Comments by Michelle Hutchison, Money Expert at personal finance comparison website finder.com:
“The announcement this evening of President Trump that he is following through with his campaign promise to build a Mexican border wall is expected to have a significant impact on the value of the Peso as well as the volume of remittances to Mexico.
“Mexico is already the number one country receiving remittances from the United States, with over $25.68 billion sent in 2015 alone, a growth of 7% on the previous year. finder.com forecasts over $28.7 billion will be transferred out of the country to Mexico this year (based on US to Mexico remittance data from 2013-2015 from The World Bank).
“While remittances have been incrementally increasing, we predict the international money transfer market to spike significantly in the wake of this announcement, particularly with further reports that Trump may bar money transfers from undocumented Mexicans if Mexico doesn’t contribute to the cost of the wall.
“The news is also expected to have a huge impact on the value of the Peso as the uncertainty around the Mexican economy mounts. The increased supply of Pesos from people transferring US dollars into the country could lead to a sharp fall in the value of the Pesos. We’re already seeing signs of this, with the Mexican Peso falling to its lowest level since January 1, 2017, after an upward trend over the past three weeks (source: xe.com analysis by finder.com).
“If you are planning to send money to Mexico, it’s important to monitor the exchange rate. In these current conditions it’s never been more crucial to compare money transfer providers to maximize the amount you’re sending to your recipient.”