FedACH Lowers Rates, Expands Services in Mexico
The Federal Reserve System recently announced two developments designed to make electronic payments to Mexico more affordable and accessible.
This past summer, the Federal Reserve System's Automated Clearinghouse (FedACH) International Mexico Service reduced the spread, or commission, on the exchange rate for payments from the United States to Mexico. The reduced spread is available to any depository institution in the United States that wants to send electronic payments to Mexico through FedACH.
In addition, the Fed has entered into an agreement with Mexico's Banco del Ahorro Nacional y Servicios Financieros (Bansefi) to enlarge the distribution channel for bank-to-bank account transfers from the United States 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 United States 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.