Mina Hamid, a migrant from Afghanistan living in Belgium, shares her experience of sending money back home to support her family. She is one of millions of migrants around the world who send remittances to their families in their countries of origin. According to the World Bank, remittances have been growing substantially over the past two decades, reaching $831 billion in 2022.
The main sources of remittances are the US, Western European countries, and Gulf Cooperation Council countries like Saudi Arabia and Qatar. Remittances to low and middle income countries are expected to continue to grow, with India being the biggest recipient at $125 billion. The rise in remittances has been attributed to the COVID-19 pandemic and the development of fintech platforms, which have made transfers faster and cheaper.
For many migrants, like Manasse Massuama from the DRC and Maria del Socorro Tejeda from Mexico, sending money back home is a way of helping their families and improving their financial situation. However, sending remittances can be a financial burden for migrants who have to work multiple jobs to afford sending money.
Remittances are often sent through traditional banks, services like Western Union or MoneyGram, or fintech applications. The United Nations’ Sustainable Development Goals aim to reduce remittance transaction costs to less than 3 percent of the amount being transferred. As of the fourth quarter of 2023, remittance costs remained high but digital transfers were cheaper.
Overall, remittances play a crucial role in supporting families and communities in countries of origin, but more efficient banking systems are needed to make money transfers easier and more accessible for migrants.
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Photo credit www.aljazeera.com
