Remittances to Mexico Jump by Most in Over a Decade Following Trump Election Win Alexandra Alper - Reuters
go to original January 3, 2017

In Mexico Valley Where Dollar Is King Fear Grows Over Trump Threat to Halt Money Flow (South Florida Reporter)

Remittances to Mexico posted their biggest jump in over ten years in November in a possible reaction to the U.S. election victory of Donald Trump, who threatened to block the transfers and eroded confidence in the peso currency during the campaign.

Mexicans abroad sent home nearly $2.4 billion in transfers in November, 24.7 percent higher than a year earlier, marking their fastest pace of expansion since March 2006, according to Mexican central bank data on Monday.

President-elect Trump ran a campaign steeped in anti-Mexican rhetoric and threatened to halt transfers from Mexican nationals unless Mexico agreed to pay for the massive wall he has vowed to build on the U.S. southern border to keep out illegal immigrants.

Trump's surprise Nov. 8 election triumph also sent the Mexican currency to record lows in a sell-off fueled by his threats to scrap a trade deal between Mexico and the United States, and to levy punitive tariffs on Mexican-made goods.

Goldman Sachs economist Alberto Ramos said in a client note the weak peso fanned the remittance surge, noting workers could be "strategically front-loading" transfers to avoid potential taxes or restrictions from the incoming U.S. administration.

The value of the remittances considerably exceeds that of Mexico's oil exports, Ramos noted.

Read the rest at Reuters

Related: Migrants in U.S., Mexico Fret About Trump Threat to Halt Remittances (Thomson Reuters Foundation)

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