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Remittances to Mexico plummet 16.2% in June, the biggest drop in over a decade
mexiconewsdaily.com ^ | August 04, 2025 | MND Staff

Posted on 08/07/2025 6:28:16 AM PDT by Red Badger

The amount of money Mexico received in remittances fell 16.2% annually in June, the largest year-over-year decline for any month in more than a decade.

Analysts partially attributed the sharp decline to fear of going out to work among Mexicans in the United States, where the U.S. government is pursuing an aggressive deportation agenda.

The vast majority of remittances to Mexico are sent from the United States, where millions of Mexicans — both documented and undocumented — live and work.

The Bank of Mexico (Banxico) reported on Friday that income from remittances totaled US $5.201 billion in June, down from $6.207 billion in the same month of 2024.

The 16.2% year-over-year decline was the biggest annual drop in remittances to Mexico for any month since September 2012. Considering only the month of June, it was the largest annual decrease on record.

“Remittances plummeted in June due to low job creation for Mexicans in the United States and the fear of migrants to go out due to the possibility of being deported,” Gabriela Siller, director of economic analysis at Banco Base, wrote on X on Friday morning.

Jesús Cervantes González, director of economic statistics at the Center for Latin American Monetary Studies, said “there are indicators that show a weakening of employment for Mexican immigrant workers in the United States.”

“That could be due both to a genuine decrease in demand for such workers and to their irregular presence at their workplaces out of fear of being deported,” he said.

Flourish logoA Flourish chart U.S. Immigration and Customs Enforcement has carried out immigration raids in various U.S. cities this year, including in Los Angeles in June.

United States President Donald Trump has pledged to carry out “the largest deportation operation in American history.”

Remittances declined more than 5% in first half of 2025 In 2024, Mexico received a record-high $64.74 billion in remittances, the 11th consecutive year of growth in such transfers.

But in the first six months of 2025, income from remittances fell 5.6% annually to $29.576 billion, according to Banxico.

The amount of money Mexico received in remittances also declined in annual terms in May, April and February.

Siller, the Banco Base analyst, said that the data for June indicated that “remittances could continue to decline for the rest of the year, affecting consumption in Mexico.”

Analysts from the banks Banorte, BBVA, Goldman Sachs and JPMorgan also believe there is a risk that remittances will continue to decline in the second half of 2025, according to the newspaper El Economista.

Such an eventuality would affect millions of Mexican families that depend on remittances to meet their basic needs. It would also affect the Mexican economy, reducing consumption and thus contributing to what is widely forecast to be a lower level of growth in 2025.

In recent years, remittances have represented 3%-4% of Mexico’s GDP.

The United States will impose a 1% tax on remittances sent in cash on Jan. 1, 2026, prompting the Mexican government to promote a government bank card that can help Mexicans living in the United States avoid the tax.

Remittances data in detail The $5.2 billion sent to Mexico in remittances in June came in 12.7 million individual transfers. The number of transfers declined 14.3% compared to June 2024. The average individual remittance to Mexico in June was $409, a 2.2% annual decline. While the average remittance declined in annual terms in June, the amount was the highest since August 2024. Mexico received 76.19 million individual remittances in the first six months of 2025, a 4.4% decline compared to the first half of 2024. The average individual remittance in the first half of 2025 was $388, a 1.3% annual decrease. Between January and June, 99.1% of all remittances to Mexico were sent electronically. The remaining 0.9% of remittances were “cash and kind” (0.7%) and money orders (0.2%). The decline in the number of individual remittances to Mexico indicates that fewer Mexicans sent money home in the first half of the year.

BBVA said that “the recent actions and immigration policies of the United States government are marginally affecting” the transfer of remittances to Mexico.

The bank said that the decline in remittances to Mexico in the first half of the year is “mainly explained by a lower incorporation of new Mexican migrants to the United States labor market.”

The peso value of an average remittance declined on a sequential basis every month in first half of 2025 The Mexican peso appreciated against the US dollar every month in the first half of the year. Therefore, the peso value of the average $388 remittance declined every month on a sequential basis.

On Jan. 31, Banxico’s closing USD:MXN exchange rate was 20.69, whereas on April 30 it was 19.61 and on June 30 it was 18.76.

Using those rates, a $388 remittance was worth 8,027 pesos on Jan. 31; 7,608 pesos on April 30; and 7,279 pesos on June 30. Therefore, a $388 remittance was worth 9.3% less in pesos at the end of June compared to the end of January.

With reports from El Economista, La Jornada and Reforma


TOPICS: Crime/Corruption; Culture/Society; Foreign Affairs; Mexico
KEYWORDS: aliens; mexico; money; remittances

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1 posted on 08/07/2025 6:28:16 AM PDT by Red Badger
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To: Red Badger

Not stopping Mexico from pilfering from the cruise ship travelers. Got notice that every passenger after July 1st is being levied $5 more per port on every sailing.

Even the ones we booked before July 1st.

Time to trash the Jones act and allow ships to sail from US ports to nowhere !! I can’t tell you how many DON’T get off in Mexico but the Jones act requires a foreign port and the cash flows to those countries even when you don’t leave the ship.


2 posted on 08/07/2025 6:31:28 AM PDT by George from New England (escaped CT back in 2006)
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To: Red Badger

Remittances make up 4 to 5 percent of Mexico’s total GDP. It would nice if that money were reinvested in America instead of Mexican grocery stores.


3 posted on 08/07/2025 6:36:38 AM PDT by FoxInSocks ("Hope is not a course of action." — M. O'Neal, USMC)
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To: Red Badger

If I’m not mistaken, remittance payments are now TAXED at 1%. The Big Beautiful Bill had an initial remittance tax of 5%, then it was lowered to 3%, then ended up at 1%. Better than nothing, I suppose.


4 posted on 08/07/2025 6:38:49 AM PDT by CivilWarBrewing (Get off my back for my usage of CAPS, especially you snowflake males! MAN UP!)
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To: Red Badger

Not enough.
And why aren’t we taxing these “remittances” at 40%?


5 posted on 08/07/2025 6:40:22 AM PDT by 13Sisters76 ("It is amazing how many people mistake a certain hip snideness for sophistication. " Thos. Sowell)
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To: Red Badger

This is excellent news .... however .... there needs to be an immediate fee added to all remittances going to Mexico/Central America of at least 20%.

This would cut down EVEN MORE, on the majority living here and sending our tax dollars and illegally earned earnings out of this country.


6 posted on 08/07/2025 6:41:11 AM PDT by Jane Long (Jesus is Lord!)
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To: 13Sisters76

I like your 40% tax idea, better than my 20% fee 😂


7 posted on 08/07/2025 6:41:59 AM PDT by Jane Long (Jesus is Lord!)
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To: FoxInSocks

Yes, a cash drain of billions of dollars a month, adds up. Taken straight out of our economy and added to Mexico’s.


8 posted on 08/07/2025 6:55:19 AM PDT by hinckley buzzard ( Resist the narrative.)
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To: Red Badger

mexico is a failed loser country that is only able to somewhat function by sponging off us.


9 posted on 08/07/2025 7:04:02 AM PDT by Jeff Vader
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To: Red Badger

Mexico will pay for the wall.


10 posted on 08/07/2025 7:26:41 AM PDT by DouglasKC
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To: George from New England

I refuse to go on any cruise ship that stops in Mexico - heard too many horror stories. The Caribbean isn’t much better.

Alaska, however...


11 posted on 08/07/2025 7:56:24 AM PDT by Bon of Babble (You Say You Want a Revolutioan?)
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To: Red Badger

Good.

A local Home Depo (Los Angeles) got raided yesterday - masked ICE agents jumped out of the back of a Penske moving van and arrested 16 illegals.

Local pols went ballistic, claiming Trump was “violating a federal judge’s order” - it was great watching these idiots heads’ explode on the evening news.


12 posted on 08/07/2025 7:58:41 AM PDT by Bon of Babble (You Say You Want a Revolutioan?)
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To: Bon of Babble
Alaska, however...

Polar bears. Wolves. Bitter cold. Just saying... ;)
13 posted on 08/07/2025 8:16:01 AM PDT by adorno ( )
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To: Red Badger

Oooh, the cartels won’t like this. Cartels smuggle illegals across borders. Those (now criminals) illegals owe the coyotes (the cartel agents) loads of $$. This is paid back by remittances.

No, remittances do not go to family members. Yeah, the family members are receivers; but, the cartel agents drop by to get the $$.

Imagine the interest on that “loan”. College loans for a degree in the US pale in comparison.


14 posted on 08/07/2025 8:32:01 AM PDT by bobbo666
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To: FoxInSocks
Remittances make up 4 to 5 percent of Mexico’s total GDP.

While using the USA as a pinata.

15 posted on 08/07/2025 8:40:03 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: CivilWarBrewing

SHOULD HAVE BEEN 100%.

PELOSI MUST OWN WESTERN UNION STOCK


16 posted on 08/07/2025 9:45:35 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: Red Badger

Money removed from America circulation.


17 posted on 08/07/2025 12:12:44 PM PDT by Vaduz
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To: Bon of Babble
I refuse to go on any cruise ship...

I agree. Not a cruiser. Never will be.

18 posted on 08/07/2025 6:09:36 PM PDT by Libloather (Why do climate change hoax deniers live in mansions on the beach?)
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To: Libloather; Bon of Babble
I refuse to go on any cruise ship...
I agree. Not a cruiser. Never will be.

But have you tried a Royal Horton Cruise?


19 posted on 08/07/2025 6:23:09 PM PDT by Pilsner
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To: Red Badger

HAHAHAHAHA!!!

Deport the illegal aliens, and other problems start to diminish.


20 posted on 08/07/2025 6:35:30 PM PDT by NorthMountain (... the right of the people to keep and bear arms shall not be infringed)
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