Trump Border Policy Unwittingly Increases Cash Transfers From The U.S. To Mexico
The fear among undocumented immigrants living in the United States concerning President Donald Trump's border policy is palpable. Efforts to support a travel ban on people from six predominantly-Muslim countries and the funding of a wall separating the U.S. and Mexico, for instance, have created a tangible urgency to act that was once dismissed before Trump's presidency as too abstract in practicality.
The Washington think-tank, The Dialogue, reports that central banks are witnessing a surge in remittances being sent to family members living all throughout Latin America.
Among the countries experiencing the greatest increases in remittances from the U.S. to the Caribbean and Central and South Americas are Guatemala, Honduras, the Dominican Republic, and El Salvador.
Labeled as the "Trump Effect," immigrants fearful of what the president and his administration plan to institute have sent more money to loved-ones and relatives.
With remittances from the U.S. floating around the neighborhood of $55 billion in 2016, the previously-listed countries have registered roughly ten to fifteen percent increases in the first quarter of 2017 over the same time period of the year before.
The World Bank states that the total number of global remittances in 2016 actually decreased in a second consecutive year, with Latin American countries serving as the exception.
Deceleration of remittances throughout the region is still possible, however, through the Trump administration's proposal to curb immigration and collect taxes on them. This may lead those affected by the Trump Effect to adopt more informal, under-the-table channels.