Despite the headwinds this year , low- and middle-income countries will grow by 5 percent to reach $626 billion in 2022, says the World Bank’s Migration and Development Brief. With an average remittance cost of $200 of 7.8% in 2022, Africa is the region “most acutely at risk of co-occurrence.”
Impact of ruble appreciation and euro depreciation
According to the latest World Bank Transition Development Brief (MDB), total remittances to so-called low and middle income countries (LMICs) will grow 5% to $626 billion in 2022. This increase, which is lower than the 10.2% seen in 2021, came despite the global headwinds that characterized much of 2022, the report said.
According to the brief, the slowdown in growth in the US dollar value of remittances sent to LMICs was due to the appreciation of the Russian currency, the depreciation of the euro, and the shortage.
Commenting on the report, Michal Rutkowski, Global Director of Social Protection and Employment, World Bank, said:
Family by remittance. Comprehensive social protection policies are helping the worker weather the income and employment uncertainties caused by her COVID-19 pandemic. Such policies have a global impact through remittances and need to continue.
Africa most exposed to ‘coincidence crisis’
Meanwhile, according to MDB, Africa is ‘most exposed to co-occurrence crisis’ region. As an example, remittances to sub-Saharan Africa increased by 5.2% to $53 billion, but this increase is significantly lower than the 16.4% increase he achieved in 2021, the report said. points out. The cost of sending $200 to this region, he said, was 7.8%, the highest among the six world regions surveyed.
Regarding the use of digital channels for remittances, the report notes that while the cost of transferring funds through these channels is much lower, several factors still make digital channels the ideal choice. I admit that I am not.
“Digital technology makes remittance services significantly faster and cheaper. These restrictions will also affect immigrant access to digital money transfer services,” MDB noted.
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