Banking - Mexico - Remittances to Mexico mark year-long decline in June

Remittances to Mexico fell 7.2% to US$1.95bn in June from US$2.1bn in the year-ago month, according to figures from central bank Banco de M?xico.

The majority of June remittances (US$1.91bn) were sent through electronic transfers, followed by cash and in specie transfers (US$25.4mn) and money orders (US$13mn).

June figures mark a 12-month consecutive trend of year-on-year declines in Mexico-bound remittances. However June remittances declined less than the 8.4% forecast by analysts, local paper El Universal said in a report.

As Mexico's second longest period of remittance decline, the trend is preceded by the 17 months of decline Mexico experienced between November 2008 and March 2010 during the financial crisis.

Alejandro Cervantes, analyst for Mexican financial group Banorte-IXE, expects the trend to reverse in line with favorable changes in the US labor market, the paper reported him as saying.

Mexico is the world's third largest remittances receiver, preceded by India and China, according to the World Bank.

Source: http://member.bnamericas.com/news/banking/remittances-to-mexico-mark-year-long-decline-in-june

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