Remittances increase for sixth straight month, but strong peso blunts the benefit
Mexican families receiving remittances from abroad are finding themselves in the same situation as dollar earners, Social Security recipients and tourists — a strong local currency doesn't always benefit local spenders. The post Remittances increase for sixth straight month, but strong peso blunts the benefit appeared first on Mexico News Daily
Remittances to Mexico have increased for the sixth consecutive month, reaching $5.57 billion in July 2026, according to the Bank of Mexico. However, the strengthening Mexican peso is diminishing the value of these funds for recipients. In July 2025, when the peso-to-dollar exchange rate was around 18.85, a $100 remittance would have provided approximately 1,900 pesos to spend.
Today, the same $100 yields only 1,700 pesos, a decrease of 200 pesos per $100 received. Despite the rise in remittance amounts, the overall benefit for recipients remains relatively low as the peso's appreciation erodes purchasing power. Remittance flows have surpassed $36.3 billion in the first seven months of 2026, marking a 3.1% rebound compared to the same period in 2025.
This increase is attributed to a rise in the average transaction size, rather than a surge in the number of transactions. Over the past year, remittance flows have stabilized and increased, signaling a positive trend despite the weakening peso.
Written by urgent.news from Mexico News Daily's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.