Md Liton Ahmed
Today we celebrate the International Day of Family Remittances #IDFR because behind every remittance there is a story of struggle, perseverance, and love.
The International Day of Family Remittances (IDFR), celebrated every year on 16 June, is aimed at recognizing the significant financial contribution migrant workers make to the wellbeing of their families back home and to the sustainable development of their countries of origin. It is also aimed at encouraging the public and private sectors, as well as the civil society, to do more together and collaborate to maximize the impact of these funds in the developing world.
The IDFR was unanimously proclaimed by all 176 member states of IFAD’s Governing Council at its 38th session in February 2015, and was noted in the UN General Assembly’s Resolution on International Migration and Development A/RES/71/237.
Proclaiming an International Day of Family Remittances represents an invaluable opportunity not only to recognize the efforts of migrant workers globally, but also to strengthen current partnerships and create new synergies among sectors to promote the development impact of remittances worldwide.
The first IDFR was celebrated on 16 June 2015 by more than 400 policy-makers, private sector representatives and civil society leaders at the opening of the Fifth Global Forum on Remittances and Development in Milan.
In 2016 over eighty money transfer operators endorsed the IDFR and committed to take concrete action to ensure that family remittances count for even more. Read their statements.
In 2017 the Day received an unprecedented support from the private sector, with over 100 Money Transfer Operators (MTOs) through IAMTN, 800 mobile companies through GSMA (including Vodafone), 6,000 savings banks across 80 countries through WSBI, and over 100 emerging payments entities through EPA. The Day was also supported by the 22 UN organizations within the Global Migration Group (GMG), individually by IOM and by several member states.Remittances directly impact one billion people: they are sent home by 200 million migrants, an estimated half of whom are women, to help feed, shelter, educate, support the health and entrepreneurship of 800 million family members. Valued at a record US$554 billion in 2019, these flows have been dramatically impacted by COVID-19, as transfers are expected to decline by almost 20 per cent in 2020.
It is not about the money being sent home, The small amounts of $ 200 or $ 300 that each migrant sends home represents about 60% of the family’s income, and this makes a big difference in their lives and the communities in which they live.
With these words, Gilbert F. Houngbo, president of the International Fund for Agricultural Development, talks about the importance of remittances in the economy of families.
The International Day of Family Remittances is celebrated every year on 16th June. Its main objective is to make known the financial importance that migrant workers contribute to the well-being of their families, and to the work of sustainable development that is created in their country of origin.
On the other hand, the different public and private sectors are encouraged, as well as society in general, to work together and collaborate with each other to increase the impact of these funds in the improvement of developing countries.
WHAT ARE REMITTANCES?
Remittances are shipments of money that migrants send to their country of origin. As a general rule, they do not have a meaning of acquiring a good or service, but of helping family members or loved ones who need money to invest in the economy of their homes, education or medical care.
HOW DO REMITTANCES WORK?
To send money to Bangladesh, for example, you usually think of financial institutions like banks, but their currency exchange rates are not the best, in addition to the time it takes to receive the money.
For these reasons, migrants usually go to companies dedicated to sending money as nrbmoneytransfer, which offer better exchange rates, the same security as their fellow bankers, and the money sent is received between 5 minutes or 24 hours. So, they help the money sent to rent more to their families and receive it just when they need it most.
Finally, at the time of sending money to a destination either in an office or through the new app to send money, it is requested to present the identification of the person who sends the money and the beneficiary’s data. And that’s it, fast and simple.
WHAT BENEFITS DOES REMITTANCE CONTRIBUTE TO THE SOCIETY?
The simple way to transfer money abroad. It often represents up to a tenth of the Gross Domestic Product of the country that receives them.
With this money that families receive in their countries of origin, it helps the economic development of rural societies or developing areas. It provides help in times of dire need such as catastrophes, helping to rebuild a country after an earthquake or war.