Economy: Mexico
Key Facts
—Who. Mexican workers abroad, the families who receive their money, and Banxico, Mexico’s central bank
—What. A Banxico board member warns remittances have lost more than 20% of their purchasing power over the last year and a half, and August inflows fell 3.6% to US$5.452 billion
—Where. Mexico, with the United States as the main source of the money
—When. Banxico’s board minutes came out on Thursday 8 October 2026, and its August remittance report on Thursday 1 October 2026
—Why it matters. Money sent home supports household spending in Mexico, and the sender side sits in US workplaces, banks and fintechs
—As of. 9 October 2026, 21:00 GMT
A member of Banxico’s governing board has warned that money sent home by Mexican workers abroad lost more than 20% of its purchasing power over the last year and a half. The warning, recorded in minutes published on 8 October, came a week after data showed remittances fell 3.6% in August.
What We Know
Banxico, Mexico’s central bank, published the minutes of its governing-board meeting on Thursday 8 October 2026. They record a member saying that the purchasing power of remittances has fallen by more than 20% over the last year and a half.
The member tied that loss to stagnating consumption in Mexico, according to EFE. Remittances are money sent home by Mexican workers abroad, mostly in the United States, and they help pay for household spending.
EFE, reporting on the minutes, points to exchange-rate moves and inflation as the cause of the erosion. This article does not quote peso exchange-rate figures.
What the Numbers Show
Banxico’s remittance report, published on Thursday 1 October 2026, put August 2026 inflows at US$5.452 billion. That was 3.6% lower than in August 2025 and the first annual fall since January.
August had 13.2 million transactions, with an average transfer of US$412. That fall followed months of annual increases.
The number of transfers fell 6.4% from a year earlier, while the average amount rose 3.0%. Put simply, fewer transfers were sent, but each one was a little bigger.
From January to August 2026, remittances totalled US$41.802 billion, up 2.2% from the same period of 2025. EFE notes that growth came despite what it calls an aggressive US immigration policy, and the United States is the main source of the money.
Private consumption in Mexico grew only 0.8% in January to June 2026, according to the minutes as reported by EFE. The board member linked that weak spending to the loss of buying power.
What Is Not Known
The minutes as quoted do not explain how the 20% figure was calculated or which prices and exchange rates it uses. We have not seen a breakdown by state or by household income.
It is also unclear whether August’s fall is the start of a trend or a one-month dip. Later monthly reports will show whether growth has really ended.
What It Means for US Readers and Investors
Mexican workers in the United States are the source of these transfers, and the money supports household spending in Mexico. A loss of buying power means each dollar sent home buys less for their families.
US banks and fintechs handle many of these transfers, and we have reported on Bitso, which says it moves about 15% of US remittances to Mexico. Investors in firms tied to this corridor should watch Banxico’s monthly data for further falls in the number of transfers.
The figures also bear on US immigration debates, since they show money still flowing under tougher policy. They do not show how many workers are affected.
Frequently Asked Questions
How much did remittances to Mexico fall in August 2026?
Remittances were US$5.452 billion, down 3.6% from August 2025. It was the first annual fall since January.
What did Banxico say about the value of remittances?
Its minutes, published on Thursday 8 October 2026, record a board member saying remittances lost more than 20% of their purchasing power over the last year and a half. The member linked this to weak consumption.
Are remittances to Mexico still growing this year?
Over the first eight months, yes. From January to August 2026 they reached US$41.802 billion, up 2.2% year on year.
What are remittances?
They are money sent home by Mexican workers abroad, mostly in the United States. The money supports household spending in Mexico.
Sources
El Universal, August remittances · El Financiero, 1 October 2026 · Infobae/EFE, 8 October 2026 · Infobae/EFE, 1 October 2026 · Banxico
Connected Coverage
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
In depth