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Remittances to Mexico Rebound With Strongest May Since 1995

Improved US migrant employment has driven larger average remittances and peso gains have cut the peso value households receive.

Overview

  • Banxico data show remittances rose 2.8% year‑on‑year to $25,287 million in January–May 2026, signaling a recovery after 2025’s decline.
  • May 2026 brought $5,611 million in raw transfers and a seasonally adjusted $5,411 million, the largest May total since 1995 and the biggest year‑on‑year gain in 18 months.
  • The recovery reflects fewer transfers but higher values per transfer, with operations down about 2.3% through May and the average remittance near $404 in May.
  • Analysts at BBVA link the rebound to stronger US labor-market conditions for Mexican migrants, which raised senders’ earnings and larger transfers.
  • Peso appreciation has reduced recipients’ real income, with BBVA estimating about an 11.1% year‑on‑year decline in real terms for May, while policy moves such as the US 1% remittance charge and Mexico’s reimbursement program remain part of the operating backdrop.