bbva: Puebla remittances could fall by $122.8 million due to us tax

BBVA estimates Puebla could see a $122.8 million drop in remittances by 2026 if the U.S. imposes a 5% tax. This would be the third-highest decrease among states receiving remittances, following Michoacán and Guerrero. Puebla's remittance decrease would be about 3.6%. BBVA's analysis indicates the cost of sending $350 from the U.S. to Mexico would rise from $6.00 to $23.50. This could drive undocumented migrants to seek alternative money transfer methods. They may rely on family or friends with U.S. citizenship or use informal channels. BBVA suggests Mexican authorities and financial institutions should enhance financial inclusion to address this challenge. Mexico received $62.5 billion in remittances from the U.S. in 2024, sent by eight million legal Mexican residents and second-generation individuals. A potential tax could affect approximately four million undocumented Mexicans in the U.S.