Planet Money The remittance mystery
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Oct 30, 2025 Explore the puzzling surge in remittances from the U.S. to Central America amid an immigration crackdown. Discover how local banks are vying for money transfers and the impact of technology on sending funds. Dive into the reasons behind increased remittances despite fewer migrants and the role of fear as a driving factor. Hear about the economic implications for countries like Honduras, where remittances make up a significant portion of GDP, and consider the possible future decline and its consequences.
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Bank Manager Spotting Big Transfers
- Larissa Vargas at Banco Ficosa noticed deposits jump from typical hundreds to single transfers of $7,000–$10,000.
- Her bank and local businesses raced to attract remittance customers with raffles and services.
Surge Amidst A Migration Slowdown
- Remittances to some Central American countries surged ~26% despite falling immigration and rising deportations.
- Banks and businesses quickly chased this cash as a major short-term economic boost.
Migrant Prepares For Possible Return
- H, a Honduran construction worker in California, reduced remittances due to job losses and fear of ICE arrests.
- He plans to open a Honduran bank account and save for a house in case he must return.