RemittancesGateway.org

UPDATE 1-Mexicans send 15 pct less cash home in Aug vs 2008

Friday, 02 October 2009 13:53

Source: Reuters
By: Michael O'Boyle and Patrick Rucker

Mexican immigrants living abroad sent 15.12 percent less cash home in August than in the same month last year, the central bank said on Thursday, the third month in a row remittances have fallen.

Migrants, mostly living in the United States, sent home $1.780 billion in remittances during August, compared to $2.097 billion wired in August 2008.

Cash sent home by millions of migrants in the United States is one of Mexico's top sources of dollars and an important pillar of consumer spending in the domestic economy.

Remittances began to decline last year for the first time on record and while the volume has fluctuated, August saw the third straight monthly dip.

A deep recession in the United States has lowered migrant incomes and helped discourage many Mexicans from looking for work north of the border.

The flow of remittances is expected to remain weak through the year as the downturn in the United States has only begun to show signs of easing.