Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Mexico's Remittances Continued to Decline in November

01/02/2013 | 11:00am US/Eastern

--November remittances down 5.1% to $1.69 billion

--November marks the fifth consecutive month of decline in remittances

--Stronger peso, employment lag seen behind decline

--January-November remittances down 1.3% to $20.74 billion

   By Anthony Harrup 

MEXICO CITY--Remittances from Mexicans living abroad fell in November for a fifth consecutive month, declining 5.1% to $1.69 billion, the Bank of Mexico reported Wednesday.

The drop in November from a year earlier brought remittances for the first 11 months of 2012 to $20.74 billion, down 1.3% from the first 11 months of 2011.

Transfers of money home began to decline in July, after a positive first half of the year.

In its most-recent report on migration, BBVA attributed the drop in the second half of the year to a stronger peso, which discourages remittances as recipients receive fewer pesos per dollar, and to lower employment and wages among Mexicans living in the U.S., compared with other immigrant groups.

While other Hispanic groups in the U.S. have recovered levels of employment in the wake of the 2008-2009 crisis, Mexicans have done so to a lesser extent, BBVA said. The bank suggested that one reason is a greater impact on Mexicans of the U.S. crackdown on illegal immigration, particularly a controversial law passed in Arizona, "since 60% of the undocumented migrant workers in the U.S. are Mexicans, and besides, more than 50% of the Mexicans in the U.S. are undocumented."

In the short-term, the peso/dollar exchange rate has a significant effect on remittances, as migrants wait for a more-favorable exchange rate before sending money home. The peso, which appreciated 8.6% against the U.S. dollar in 2012, in November was 5% stronger than in the year-earlier month.

BBVA said that it expects full-year 2012 remittances to be between 0.5% and 2.5% lower than in 2011, and that they will grow between 1% and 3% in 2013.

"Given that the level of employment of Mexican immigrants in the U.S. appears to be lower, and that this is the variable that determines the long-term trend in remittances, it's foreseeable that remittances will also be lower and that it will be difficult, at least in the next two years, to reach the all-time highs seen in 2007," BBVA added.

Despite the slowdown in the second half of 2012, remittances remain a significant source of dollar inflows into Mexico, ahead of foreign tourism and foreign direct investment.

Inflows from foreign tourists totaled $10.3 billion in the first 10 months of 2012, according to central-bank data, while foreign direct investment totaled $13 billion in the first nine months of 2012.

Write to Anthony Harrup at anthony.harrup@dowjones.com.

React to this article
Latest news
Date Title
03:16a CHINESE PEOPLE : Xi urges major breakthrough in Chinese military
03:16a MOODY : affirms Mauritius's Baa1 government bond rating with stable outlook
03:15a CROMA SECURITY SOLUTIONS : Reliance Digital to surpass Tata's Croma in electronics retail
03:15a LMS CAPITAL : Plans To Return Further GBP40.0 Million To Shareholders
03:14a NANOCO : Says Successfully Launched First Lighting Products With Marl
03:13a AGRA – ALLIANCE FOR A GREEN REVOLUTION IN AF : Reducing Post-Harvest Losses
03:13a EDP RENOVAVEIS : Renováveis closes new institutional partnership structure for 100 MW in the US
03:13a RICHTER GEDEON VEGYESZETI GYAR NYRT : Extraordinary announcement
03:13a MYCAB : Supranational hotels appoints mycab for all airport and train transfers around the globe
03:13a DOVRE : Disclosure Policy
Latest news
Hot News 
ORCO PROPERTY : Group : Q3 2015 Financial Results
STABILUS : setzt profitablen Wachstumskurs im Geschäftsjahr 2015 fort und steigert Umsatz nach vorläufigen Zahlen um 20,5% auf 611,3 Mio. Euro (DGAP News)
PAYPOINT : *traders: liberum raises paypoint to 'buy' ('hold')
MARSTON : Pub owner reporting much reason for cheer ; LEISURE
EQS : 3rd quarter characterized by the international expansion - outlook confirmed (DGAP News)
Most Read News
11/26 CREDIT CHINA : Acquires 35% Equity Interest in Genesis Business at a Consideration of RMB560 Million to Create “Chinese Version SQUARE”
11/26 PROTASCO BHD : Others
11/26 DELEUM BHD : Dealings in listed securities (chapter 14 of listing requirements) : dealings outside closed period
11/26 PEMEX PETRÓLEOS MEXICANOS : decreased the accident frequency rate by more than 33 percent
11/26 Net Asset Value(s)
Most recommended articles
03:10aDJFrench Consumer Spending Declines in October
03:08a Alliance Trust chairwoman Karin Forseke resigns
03:00a KPN : Movil-appointed board member leaving as Movil to sell stake
02:56a Japan spending slumps even as unemployment hits 20-year low
02:48a House price growth slows in November - Nationwide