MEXICO CITY—Remittances to Mexico totaled $5.57 billion in June, just under the all-time high reached the month before, but that figure is dampened in real terms due to the sharp appreciation of the peso against the dollar, Reuters reported.
June remittances -- money sent home from Mexican workers abroad -- were 8.3% higher than a year ago, data published by the country's central bank shows Reuters said. However, in pesos, remittances actually declined 6.2% year-over-year, Goldman Sachs analyst Alberto Ramos told the news organization
The peso strengthened more than 15% versus the dollar from June 2022 to June 2023, boosted by higher interest rates and "nearshoring," or the relocation of manufacturing largely from Asia to the area, Reuters explained.
“The appreciation has caused some Mexican communities, who rely heavily on remittances sent from the United States, to clamp down on spending. Meanwhile, some workers in the U.S have tried to send more cash home to cushion the impact,” Reuters noted.
With the June increase in remittances, Mexico reached a quarterly record of $16.3 billion, and broke a 12-month record of $61.2 billion, the report added.
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