UNITED NATIONS, New York, June 16, 2021 - The Secretary-General Antonio Guterres' message to mark the International Day of Family Remittances, comes as World Bank data showed that cash wired home from migrants in wealthy countries, dropped only 1.6 per cent in 2020 from 12 months earlier, to $540 billion, far lower than initial estimates.
“Migrants put their families first”, by buying less and dipping into their savings to send money to relatives, Mr. Guterres said.
“Fortunately, remittances have proved to be much more resilient and dependable than expected” he added.
Big value on small remittances
Remittances are a lifeline for many & have proved more dependable than expected during the pandemic.
On #FamilyRemittances Day, let's reaffirm our solidarity with migrants who play an important role in keeping essential services & the economy running in many parts of the world. pic.twitter.com/OsOGe9vMvD
— António Guterres (@antonioguterres) June 16, 2021
Individual remittances may not be of high value but collectively the flows are three times greater than global official overseas development assistance, according to the UN.
They underwrite many basic household needs and support education and entrepreneurship, which often prove transformational for households and local communities, and contribute to the 17 Sustainable Development Goals (SDGs).
Local currency depreciation in recipient countries and increased government support for formal migrants in host countries during the pandemic, also had an impact on keeping remittances buoyant.
COVID-19 pandemic has made clear – play an important role in keeping essential services and economies running in many parts of the world.Looking forward, Mr. Guterres said efforts must continue to support and protect migrants, who – as the
“Ensuring that all migrants, regardless of legal immigration status, are included in COVID-19 vaccine distribution plans, is critical for the health and safety of all”, he underscored.
Calling them “a lifeline in the developing world”, he also advocated for continued efforts to reduce the costs of transferring remittances to as close to zero as possible, in line with the 2030 Agenda for Sustainable Development and to foster financial inclusion for migrants and their families, especially in poor rural areas.
The Global Compact for Safe, Orderly and Regular Migration offers a unified framework for such actions, the Secretary-General said.