Because of the stricken US economy and the falling dollar, Mexicans are sending less money to their homes.
According to Mexico’s central bank, the sharpest fall was recorded in remittances during July that was 6.9% down compared to the same period last year.
Besides oil revenues, remittances are counted Mexico’s second largest legal source of foreign income.
More than 20 percent Mexican migrants have been working in the US distressed construction industry.
Jesus Cervantes, who is the Director of Economic Measurement for Mexico’s Central Bank, says that the job situations for Mexican migrants has become quite complicated after the US mortgage crisis.
As the US has fallen 8% this year, the families of these migrants who depend on the sent money are suffering due to critical exchange rate of the Mexican peso against the US dollar.
According to Mexico’s central bank, during the first seven months of the year, remittances were 2.9 percent lesser than for the same period last year.
The flow of money from the US to Mexico is considered the largest flow of remittances in all migrant workers worldwide.
In general, the migrants send almost $300bn to their homes from the US which is three times higher than the level of foreign aid.