During the last few months the WBG, experts and other civil society groups have noted increasing anecdotal reports of banks’ “derisking” activities, including in relation to MTOs that provide international remittance services. Such evidence is currently not backed by substantiated, verified and comprehensive data on the drivers and the effects of this phenomenon.Read more
Source: Oxfam, 30 January 2015
At least in economic terms, migration appears to be some kind of developmental wonder-drug. Remittances from migrants to developing countries are remittances v other flowsnow running at some three times the volume of aid, and barely faltered during the 2008-9 financial crisis (see graph).
Cash remittances to Cuba in 2012 surpassed all revenue coming from the main components of the Cuban economy while becoming the largest element of support to the retail market,
according to a study by a Miami-based analysis group.
Money exchange houses in the UAE have increased the service fees for high-value remittances to some Asian countries to cope with rising operational costs, Gulf News has learnt.
Starting this month, transactions above 50,000 Indian rupees, Bangladeshi takas, Nepalese rupees and Sri Lankan rupees will cost Dh5 more at Al Fardan Exchange, UAE Exchange, Al Ansari and Wall Street, among other money transfer operators in the country.
In a bid to address the weakening buying power of overseas Filipino workers (OFWs) and their families, the recruitment industry is now calling on the Bangko Sentral ng Pilipinas (BSP)
to allow commercial banks to accept foreign currency accounts.
In a statement, recruitment consultant Lito Soriano said it might be a good idea for the BSP to allow OFWs to open multi-currency deposits in order to save all the possible amounts during their remittance of earnings to the country.
“Rupee down, utilise the opportunity.” This is the subject line of an e-mail message sent out to NRIs by a nationalised bank seeking deposits when the rupee slid to 58.50
against the dollar on Tuesday. The message captures the essence of the impact of the free fall of the rupee on Indians living overseas, especially in the Gulf countries. “It’s good for us NRIs, but bad for our country’s economy,” said Abu Iringattiri, who works as an accountant in Saudi Arabia. Iringattiri told Business Line over the phone that most NRIs, mainly manual workers earning low wages in the Gulf, were happy about the rupee depreciation. “For the few hundred riyals or dhirhams they send, their families back home get more rupees and hence they are happy.”
Bangladesh’s foreign exchange reserves rose to a record $18.12 billion at the end of January from $18.07 billion a month earlier, the central bank said on Monday.
The higher reserves, which stem from a widening current-account surplus, are enough to cover six months of imports. At the end of January 2013, reserves totalled $13.1 billion.
Rising exports and a slowing of imports have helped build the reserves despite a drop in inward remittances as number of Bangladeshis going abroad to work in the Middle East has declined.
New data on the piles of cash Canadian immigrants send overseas raises questions about our aid policies
When Piara Singh Bual arrived in Vancouver from India in 1970, he was 18 and alone. With his parents and seven siblings living in a small village in Punjab, he took jobs picking blueberries and worked at a sawmill, sending half of all his earnings back to them. Over the following decades, and now into retirement, the money transfers have continued.
Economists have aired their concerns over the fall in the country’s remittance earnings since April last saying that, if the trend persists, it might destabilise the balance of payments (BoP) situation that has been rather comfortable for quite sometime.
They said appreciation of the local currency against the US dollar and the government’s ‘weak economic diplomacy’ were the main reasons for the fall in remittance inflows.
THE fact that Jamaica has for too long been living beyond its means is dramatised by external borrowing reaching 140 per cent of Gross Domestic Product (GDP) and the large and persistent gap between foreign exchange earnings and the expenditure.
The perennial foreign exchange gap is also evident in the depreciation of the Jamaican dollar of 14.4 per cent in 2013.