ABOUT THE MIF'S WORK ON REMITTANCES
When the MIF began studying remittance flows in 2000, they were often inaccurately recorded and largely hidden in the “errors and omissions” columns of central bank balance of payments records. Since then, the MIF has raised overall awareness about the true volume of these flows, and has also focused on achieving two main goals:
(i) reducing the average cost of sending remittances to Latin America and the Caribbean, and
(ii) increasing the number of families receiving remittances through the formal financial system.
Progress toward the first goal of cost reduction has exceeded expectations.
Today, average remittance transfer prices to the region are among the lowest in the world, averaging between 5% and 6% - approximately a 75% drop since 2000.
Under the second priority, the MIF has launched approximately 40 pilot projects exploring various ways to “bank the unbanked” and enhance the development impact of the over 250 million money transfers made every year to families across the region. Through practical project experience and the knowledge generated by its research on remittance market trends, the MIF remittances work continues to address the challenge of financial inclusion, looking to determine the role remittances can play in increasing access to finance for underserved populations throughout the region.
Contact the MIF remittances team.