Remittances to Mexico rise, but ‘super peso’ crimps spending power

People sending money back to Mexico this year have faced a new challenge: the “super peso.”

The Mexican currency reached the strongest levels against the U.S. dollar in almost eight years over the summer.

The skyrocketing peso has eroded the purchasing power of households in Mexico who rely on remittances from abroad. The currency’s rise means every dollar sent home yielded fewer pesos than before.

Coupled with inflation at home, the buying power of remittances is set to fall this year over last for the first time in a decade,…