Remittances sent to Mexico grow 1.8% in July, but their purchasing power decreases

The money sent by compatriots from the United States to Mexico is at one of its best moments. Remittance income from abroad totaled 5.571 billion dollars in July. This represents an annual increase of 3% and 1.8% compared to June of this year.

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Remittances thus accumulate a streak of six consecutive months of growth, averaging an increase of 3.7% between February and July. The amount sent between January and July rose to 36.349 billion dollars, higher than the 35.250 billion dollars recorded in the first seven months of 2025.

However, the figures show mixed results for the millions of Mexicans who receive money from abroad. In real terms, remittances contracted by 6.5% in the last year due to inflation and, mainly, the depreciation of the dollar. According to a BBVA Research report, since remittances peaked in July 2022, remittances to Mexico in real terms have fallen 24.8%, which has affected the income of households receiving these resources over the last four years.

“Although exchange rate effects have begun to moderate, the combination of a still relatively strong peso and inflationary pressures continues to limit the purchasing power of recipient households,” says Gerónimo Ugarte, chief economist at VALMEX brokerage house.

Despite restrictions issued by the U.S. government, remittance sending remains strong during July, which means relief and a banner in the economy of millions of Mexican families, although other factors call its effectiveness into question. “While flows maintain a positive trajectory and show resilience, the advances observed in nominal terms still face the challenge of translating into an effective recovery of purchasing power,” Ugarte details.

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The evolution of inflation, the exchange rate, and labor market conditions in the United States are factors that will determine the real capacity of these incomes to sustain the consumption of recipient families, according to the specialist.

The Mexican and Latino workforce is also continuing to recover. According to BBVA, in July 2026, 33.5 million people self-identified as Hispanic or Latino were employed, a figure higher than the previous month and the level observed in January 2025, when the Trump administration began, although lower than the levels recorded during the first five months of the year.

Payment methods remain unchanged despite threats from the Donald Trump administration. According to the central bank, between January and July, 99.1% of total remittance income was made through electronic transfers, registering a level of 36.037 billion dollars. Meanwhile, remittances made in cash and in-kind and money orders represented 0.7% and 0.2% of the total amount, respectively, totaling 244 and 69 million dollars, in that order.