Question

1. Should the U.S. government regulate the exchange rate that financial institutions charge Mexican migrant workers for sending money back to Mexico? Why or why not?
2. Given the success in El Salvador, do you think the other countries in CAFTA-DR should adopt the U.S. dollar as their currency? Why or why not?

Answer 1

There are arguments both in favor and against the Directo a Mexico program itself, to begin with. Some congressmen slam the federal government involvement in helping with the immigrants to wire money back to Mexico. This program facilitates all immigrants with no difference between legal and illegal immigrants. Anyone even without a social security number can avail of the facility. The program makes it truly inexpensive for Mexicans to move refund to their house nation. In that sense, there is currently significant indirect involvement of the Federal federal government in regulating the transfers' fees charged by financial institutions. The federal government also provides a competitive currency exchange rate for the wire transfer to Mexico. The bigger truth remains that immigrants comprise a necessary labor force, which the United States needs. There are some locations that are heavily migrants. These individuals add to the United States economy in a huge way. It ends up being an indirect duty of the federal government to guarantee that this community gets the assistance in regards to currency exchange rate regulation so that private financial institutions do not take advantage of their situation and charge unfair rates. I think the United States federal government ought to actively manage the currency exchange rate charged by financial institutions to safeguard the interests of a large population of Mexican migrant workers working and living in the United States.

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