Mexico’s Central Bank Warns Remittances Lost 20%
A Banxico board member says remittances lost more than 20% of their buying power in a year and a half, after August inflows fell 3.6%. The post Mexico’s Central Bank Warns Remittances Lost 20% appeared first on The Rio Times .
A Banxico board member has warned that remittances sent home by Mexican workers abroad have lost more than 20% of their purchasing power over the past year and a half. This warning came during Banxico's governing-board meeting minutes published on 8 October 2026, following data showing a 3.6% drop in August remittance inflows to US$5.452 billion.
The erosion is attributed to stagnating household spending in Mexico, with exchange-rate moves and inflation playing a role, according to EFE. The money sent home by Mexican workers, mainly from the United States, supports household spending. However, private consumption in Mexico only grew 0.8% from January to June 2026, leading the board member to link the loss of buying power to the decline in remittance value.
From January to August 2026, remittances totaled US$41.802 billion, up 2.2% year on year, despite the recent August fall. The United States remains the main source of these remittances.
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