Money

Mexico City –  Remittances to Mexico totaled $1.62 billion in November, up 8.56 percent over the same month in 2009, the country's central bank said Monday.

But remittances for the January-November period of 2010, $19.5 billion, were down 0.56 percent from the same period the year before.

Ixe bank said in a report signed by analysts Luis Arturo Flores and Lucia Martin that for December, remittances are expected to reach $1.62 billion.

"With that result, remittances would close 2010 with an accumulated total of $21.13 billion, which would mean a marginal decline of 0.21 percent compared to the accumulated remittances of 2009," the report said.

With regard to 2008, the expected result for 2010 would be 15.9 percent lower, Ixe said.

"This signifies that in 2010, remittances plus tourism were not able to really take off, unlike other indicators linked to the foreign market (exports of manufactured goods and oil products, direct foreign investment) which showed better performance and a stronger recovery," the bank added.

Furthermore, during 2010 the peso appreciated against the dollar, which has hurt the purchasing power of people receiving remittances in Mexico.

According to figures of the Mexican central bank, the average remittance in November was $307.50, and a total of 5.1 million of them were sent, compared with 5.6 million in October.

The remittances, mostly coming from the United States, are Mexico's second largest source of foreign currency after oil and provide vital income for poor families.

Analysts expect that in 2011, remittances will perform better. Ixe estimates that they could increase by as much as 6.47 percent, to reach $22.5 billion.