The Federal Reserve System recently announced two developments that are designed to make electronic payments to Mexico more affordable and accessible.
In August, the Federal Reserve System's Automated Clearinghouse (FedACH) InternationalSM Mexico Service reduced the spread, or commission, on the exchange rate for payments from the U.S. to Mexico. The reduced spread is available to any depository institution in the U.S. that wants to send electronic payments to Mexico via FedACH.
In addition, the Fed has entered into an agreement with Mexico's Banco del Ahorro Nacional y Servicios Financieros (Bansefi) to provide an enlarged distribution channel for bank-to-bank account transfers from the U.S. to Mexico. Using an existing network of more than 750 branch locations of Mexico's savings and credit unions, Bansefi will open a low-cost account for any Mexican who wants to receive remittances in Mexico. The agreement is expected to make it easier for Mexicans living in the U.S. to send money home through formal channels.
For more information, contact Larry Schulz, vice president of the Federal Reserve Retail Payments Office, at (404) 498-8792.
