What we’ve learned about remittance to Mexico in 2020
With Christmas celebrations starting on December 12, and the end of the year only a few weeks away, now is a good time to reflect upon the year in remittance, in particular for our customers who send money to Mexico.
Nobody could have predicted the impact the Covid-19 would have had in 2020, not just the way in which it has accelerated use of digital technology but also how it has reduced money sent to many countries and had the opposite effect elsewhere.
Thankfully, Mexico falls into that second category, receiving more money in overseas remittances than ever before. As we enter the festive season it is likely that this trend will continue.
How is Christmas celebrated in Mexico ?
- December 12: Day of the Virgin of Guadalupe – a Catholic feast celebrating Juan Diego’s encounter with the Virgin Mary in Mexico City in 1531
- December 16-24: Las Posadas – commemorating the journey made by Joseph and Mary from Nazareth to Bethlehem
- December 24: Christmas Eve
- December 25: Christmas Day
- December 28: Day of the Holy Innocents
- January 6: Three Kings Day
Though Christmas 2020 will be different to normal, with President Andres Manuel Lopez Obrador discouraging traditional celebrations in the face of the Covid-19 pandemic many Mexicans won’t be travelling as usual.
However, it will remain a busy period for remittances with expats, predominantly living in the US, keen to send money home to family and friends for the festive period.
What factors have impacted money transfer to Mexico in 2020?
Despite an overall decline in remittances worldwide in 2020, The World Bank (as quoted by Payments Source) has predicted that payments to Mexico (as well as Pakistan and Bangladesh) will have actually increased this year.
For example, in June 2020 they had gone up by 11.1% when compared to the same month in 2019.
The key factor driving this rise in money transfers to Mexico is the strength of the US Dollar against the Mexican Peso, a direct result of the Covid-19 pandemic harming emerging markets more than established ones.
With 97% of expat Mexicans living in the US the devalued Peso creates an opportunity to send money home, where it will be worth more to those who receive it. Even the current high unemployment levels in the US haven’t stopped the flow of remittances to Mexico. Our customers are clearly still keen to support those back home and make the most of the favorable exchange rate.
Is now a good time to send money to Mexico from the US?
The strength of the US Dollar against the Peso certainly makes it a good time to send money, and as we have mentioned many will be looking to do so as Christmas celebrations start. However, it is also worth remembering that choosing to send money through Small World offers an additional advantage.
Your first digital transaction with us is transaction-fee free. This means that, whether sent as a bank deposit or as cash pick-up to be collected at one of over 11,000 destinations across Mexico, you will be getting excellent value for money.
If you missed our recent article on the top do’s and don’ts of sending money home in December, make sure you have a read to ensure money arrives home in the safest way possible.
All that is left is for us to wish you and your family a Feliz Navidad!
The most popular ways to send money to Mexico:
1. Cash Pick-Up
2. Bank Deposit
Our main partners in Mexico are: Elektra, Bancoppel, BBVA Bancomer, Banorte, Soriana, Aurrera Walmart, Bansefi. And don’t forget, your first digital transaction is fee-FREE.