Mr. Kangni R Kpodar, Mr. Montfort Mlachila, Mr. Saad N Quayyum, and Vigninou Gammadigbe
. I. T. and R. McNabb . 2009 . “ Macro Determinants of Emigrant Remittances ,” World Development 27 ( 8 ): 1493 – 1502 .
El-Qorchi , M. , M.S. Maimbo , and J. F. Wilson . 2003 . “ Informal funds transfer systems: an analysis of the Informal Hawala System ” IMF Occasional Paper , Vol. 222 . International Monetary Fund , Washington, DC .
Frankel , J . 2011 . “ Are Bilateral Remittances Countercyclical? ” Open Economies Review , 22 ( 1 ), 1 – 16 .
Freund , C. and N. L. Spatafora . 2008 . “ Remittances, transaction
. In fact, remittances are especially important for low-income countries.
How is the money transferred?
A typical remittancetransaction takes place in three steps. In step 1, the migrant sender pays the remittance to the sending agent using cash, check, money order, credit card, debit card, or a debit instruction sent by e-mail, phone, or through the Internet. In step 2, the sending agency instructs its agent in the recipient’s country to deliver the remittance. In step 3, the paying agent makes the payment to the beneficiary. For settlement between agents, in
This Selected Issues paper analyzes Kenya’s success in boosting financial inclusion. Kenya has become a regional and global leader in mobilizing new technologies to advance financial inclusion, poverty reduction, and growth. The rapid progress of financial inclusion in Kenya has been a result of a friendly environment for the absorption of information technology, dynamic local banks, and open and stable regulations. Advances in financial inclusion over the past 10 years have allowed Kenyans to reap many of the benefits of financial access at a much faster pace than the typical cycle of financial deepening in low- and middle-income countries. Mobile financial services have lowered the transaction cost of remittances, allowing Kenyan households to smooth consumption in the face of shocks and significantly reducing poverty.
Ms. Kimberly Beaton, Ms. Svetlana Cerovic, Misael Galdamez, Metodij Hadzi-Vaskov, Franz Loyola, Zsoka Koczan, Mr. Bogdan Lissovolik, Mr. Jan Kees Martijn, Ms. Yulia Ustyugova, and Joyce Wong
Outward migration has been an important phenomenon for countries in Latin American and the Caribbean (LAC), particularly those in Central America and the Caribbean. This paper examines recent trends in outward migration from and remittances to LAC, as well as their costs and benefits. For the home country, the negative impact from emigration on labor resources and productivity seems to outweigh growth gains from remittances, notably for the Caribbean. However, given emigration, remittance flows play key financing and stabilizing roles in Central America and the Caribbean. They facilitate private consumption smoothing, support financial sector stability and fiscal revenues, and help reduce poverty and inequality, without strong evidence for harmful competitiveness effects through shifts in the real exchange rate.
Getting the money there
A typical remittancetransaction takes place in three steps:
• The migrant sender pays the remittance to the sending agent using cash, check, money order, credit card, debit card, or a debit instruction sent by e-mail, phone, or through the Internet.
• The sending agency instructs its agent in the recipient’s country to deliver the remittance.
• The paying agent makes the payment to the beneficiary.
For settlement between agents, in most cases, there is no realtime funds transfer; the balance owed by the sending agent to