'Dólares' from here to there
Imagine if Mexicans in the U.S. chose to stop sending money to their families south of the border. It would upset the families, to be sure, and rock the Mexican economy. "Remesas" or remittances to Mexico are now $50 billion on a yearly basis. Let's go into the numbers:
Mexican families received a record high of US $48.3 billion from abroad during the period from January to October. The number represents an increase of 14.6% over the same period last year, data from the Mexican central bank showed on Thursday.
The figure also marks 30 months of sustained increase with highs recorded in May ($5.142 billion), June ($5.144 billion) and September ($5.3 billion). In October alone, the number of remittances was US $5.35 billion — 11.25% more than the amount of US $4.81 billion registered in the same month of 2021.
In total, 124 million operations were registered between January and October, mostly electronic transfers.
Remittances, mainly from Mexican migrants in the United States, represent the country's second-largest source of foreign revenue after automotive exports.
It also accounts for more than the Mexican agricultural sector, which contributes 3% to the gross domestic product.
Think about it: 3% of the GDP! According to the article, 94% of remittances come from California, Texas, and Minnesota. Am I the only one surprised that Minnesota made the top 3?
It's all about "son" in the U.S. sending "dólares" to "mami." It generally goes to food, clothing, and family health care. Honestly, it keeps a lot of families south of the border living from month to month.
The numbers are so vital that the Mexicans living in the U.S., and especially the ones sending money, are referred to as "heroes." Yes, that young man cutting your grass or cleaning your table at the restaurant is a hero back home.
How does this make Mexico more prosperous? I don't know, but it certainly provides a safety net that Mexico does not have to pay for.
PS: Check out my blog for posts, podcasts, and videos.