Remittances to Mexico set alarm bells ringing after biggest drop in 12 years

Measures taken to close illegal border crossings with Mexico, massive deportation operations across the country and an unprecedented increase in ICE raids on workplaces, are some of the causes that analysts blame for the deepest drop in the last 12 years in remittances sent to the Aztec country.

The decrease of more than 250 million dollars in money arriving to Mexico from the US in April reflects the real situation between both nations. The amount sent by Mexican citizens to their country of origin is the lowest in more than a decade, according to the Mexican bank.

The average transaction was $385, while in the same month last year it was $403, a reduction of $18 or 4.4%., according to an April report published by Banxico.org.

The document, which monitors and analyzes remittances, also shows a reduction in wire transfers and money orders compared to the previous month.

Specialists say this is the worst April for remittances since 2009, when the global economy was suffering the effects of an economic crisis.

Mexico seeks to reconcile its remittances and not lose millions

Even President Claudia Sheinbaum spoke about the decline in remittances during a press conference this week, and urged citizens to remain calm while authorities analyze the drastic drop in remittances to her country.

She said that a group of officials would travel to the U.S. to work on the issue of a 3.5% tax on remittances to Mexico, included in the controversial "Big Beautiful Bill" budget reconciliation law. The tax included in the legislation could generate revenues for the U.S. nation of more than $2 billion annually, based on the more than $60 billion in remittances sent to Mexico in 2024.

If the tariff passes in the Republican-majority Senate, it is estimated that the remittances of nearly 40 million people would be affected, including permanent U.S. residents, temporary workers, and undocumented migrants.