Cheap Dollar Price Affects Country's Income: 'Squeezes' Remittances
Portafolio Journalist 02/09/2026 22:24 Updated: 02/09/2026 22:24
TL;DR
- The U.S. dollar has depreciated to its lowest level in four years, impacting remittances to Latin America.
- Mexico saw a 4.6% decrease in remittances in 2025, ending 11 consecutive years of growth.
- Nine other Latin American countries experienced an 8% increase in remittances in 2025.
- Specialists warn of reduced purchasing power for families receiving remittances due to dollar depreciation.
- The weak dollar is attributed to an unhealthy U.S. economic outlook and is seen as a potential driver of inflation by making imports more expensive.