IDFR2024: Digital Remittances Towards Financial Inclusion and Cost Reduction

The International Day of Family Remittances (IDFR) is celebrated on 16 June each year. The IDFR recognizes the crucial contribution of over 200 million migrant workers who send money to over 800 million family members in low- and middle-income countries. It highlights the resilience of migrant workers in the face of uncertainty while promoting reduced transfer costs and greater financial inclusion through remittances.

Remittances are a lifeline to the developing world and are used to pay for basic household needs, education and entrepreneurship. While individual remittances may be relatively small (the average remittance is US$200-US$300 a month), collectively, these flows are three times greater than global official development assistance.

Over the past 20 years, remittance flows have increased five-fold. Even during economic downturns, remittances continue to flow as they bind migrants to their families back home, helping them stay afloat. In 2023, remittances to low- and middle-income countries increased by almost 4 per cent to reach US$ 669 billion.

Behavioural shifts among migrants and the diaspora—such as sending savings and using mobile transfers—have further bolstered remittances. The COVID-19 pandemic catalysed the use of formal remittances, with mobile remittances alone increasing by 48 per cent in 2021. Digitalization is less costly than cash transfers and has advanced the financial inclusion of migrants and their families.

The International Fund for Agricultural Development (IFAD) is an international financial institution and a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries.

Видео IDFR2024: Digital Remittances Towards Financial Inclusion and Cost Reduction канала IFAD