Tuesday, 2 September 2008

Mexicans sending home less money


The slowing of the US economy and the fall in the dollar has led to a sharp drop in the amount of money that Mexicans are sending home.

Remittances suffered their sharpest fall on record, down by 6.9% in July compared to the same month year before, according to Mexico's central bank.

This money is the country's second largest legal source of foreign income after oil revenues.

Over 20% of Mexican migrants work in the troubled US construction industry.

The Director of Economic Measurement for Mexico's Central bank, Jesus Cervantes, said that the job situation for Mexicans working in the US had become more complicated since the US mortgage crisis.

Families in Mexico who depend on the income sent to them from workers abroad are also suffering from the unfavourable exchange rate of the Mexican peso against the US dollar - with the US dollar falling 8% this year. [Read more]

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