Since the U.S. election victory of President-elect Donald Trump, money being sent to Mexico from within the U.S. has hit its highest rate in over ten years.
According to a Reuters report from November, nearly $2.4 billion in remittances have been sent from Mexicans living abroad back to their homeland. Statistically, this is 24.7% higher than a year earlier. It’s also at the highest rate since March 2016.
Trump’s victory has a clear-cut correlation with this reality. Since the beginning of his campaign, Trump has made it apparent he will remain a stalwart on anti-illegal immigration policies, including the proposal of constructing a secure wall along the U.S.-Mexican border.
Hard hitting tariffs and policies regulating trade will also be in play under Trump’s administration. Goldman Sachs economist Alberto Ramos believes the possibility of tough regulations has propelled the remittance surge, claiming workers could be “strategically front-loading” transfers to avoid potential taxes or restrictions from the incoming Republican government.
Another economist, Mexican central bank governor Agustin Carstens, said in an interview last month that increased rates of remittances are occurring because of weak exchange levels and fears over Trump’s policies.
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