Last updateFri, 19 Oct 2018 7am

Remittances: Mexico’s highest source of income

The latest figures from Mexico’s Central Bank (Banxico) show that 2017 broke records for receiving remittances from Mexicans abroad.

US$26,167,000,000, the highest figure to date, most of it from the United States. This is more than the revenue generated by oil exports, and could be much more if one included undelivered Mexican mail still being sorted.

But for safety and expediency reasons, remittances today are mostly transferred through formal transfer systems such as banks or money transfer organizations (MTOs).

It will take an economic researcher who pretends to understand intricate financial processes to explain how this all works. That would be me.

Here we go. The process is divided into three stages.

Stage One: The First Mile. That would be the sender saving up his money in a financial institution, preparing to remit. This of course is preferred over hiding the money in an old shoe box, because the money is earning .00014 percent interest compounded each lunar eclipse.

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