People sending remittances back to Mexico in 2017 broke an all time record of $26.1 Billion.
Mexico’s Central Bank Banxico showed 2017 to be a record-breaking year for remittances by Mexicans abroad. From January to November 2017, Mexicans sent $26,167,00,000, the highest figure to date.
In 2016, Mexicans set another record in remittances of $24.1 billion. Banxico reports that 97 percent of the funds sent to Mexico came through wire transfers.
Mexico’s second largest source of income was the export of oil for $18.5 billion in the first 10 months of 2017.
The record breaking was shown to be reflected by the weakening of the peso and an alleged threat by the Trump Administration to tax remittances.
The issue with remittances comes at a time when stark debates rage within DC on funding the $21.6 Billion Wall.
Taxing cash remittances and renegotiating the North America Free Trade Agreement (NAFTA) has led to tension between U.S. and Mexico. As of December, the peso exchange rate fluctuated around $19.6 pesos per $1 USD.
The biggest problem some Americans have is that the remittances sent back to Mexico should be recirculated into the American economy and not sent abroad. Other Americans including the Trump administration believe these remittances should be taxed at the very least.
What are your thoughts?