Transfer of money to Mexico by citizens abroad recorded an annual growth of 11.4% in 2020, resulting in an accumulation of a historic balance of 40,606 million dollars, according to the Bank of Mexico (Bancico).
This is the largest influx for a similar period, according to Goldman Sachs economist for Latin America, Alberto Ramos, is the result of “generous remittances to support wages in the United States, as well as a competitive exchange rate differential.”
In 2020, 98.9% of transfers reached the country through electronic transfers, 0.7% in cash or in kind, and 0.4% via postal or bank transfers (remittances).
Regarding the collection institution, 22.9% was received in banks and 77.1% by non-bank institutions.
According to statistics, more than 95% of remittances that arrive in Mexico come from the United States and 1.6% come from Canada. “Other countries that are important in sending remittances into the country are: the United Kingdom, Ecuador, Colombia, Chile and Spain,” said Juan José Lee, chief economist at BBVA Mexico.
He explained that from the United States, the main states of origin for remittances are California, Texas, Minnesota and Arizona.
In 2020, the state of Jalisco ranked first as a recipient of remittances in Mexico with four thousand and 153 million dollars, replacing Michoacan, which has occupied this position for more than 15 years, and which is in second place, four thousand and 56 million dollars.
Guanajuato is followed by 3,469 million dollars. And Mexico City with 2416 million dollars and Mexico City 2.142 million dollars.