2012 Remittances Down from Mexicans Living Abroad Amy Guthrie - WSJ.com
go to original February 3, 2013

MEXICO CITY - Remittances from Mexicans living abroad fell on the year in December for a sixth consecutive month, declining 4.5% to $1.71 billion, according the Bank of Mexico.

The December inflow brought full-year remittances to $22.45 billion, down 1.5% from the amount of remittances sent in 2011.

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

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 appreciated 8.6% against the U.S. dollar in 2012.

Remittances are a significant source of dollar inflows into Mexico, ahead of foreign tourism and foreign direct investment. The average money transfer in December was for $290.

Economists also said employment of Mexican workers in the U.S. remains weak following the 2008-2009 economic crisis, while wages are depressed.

Write to Amy Guthrie at amy.guthrie@dowjones.com

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