Remittances to northern States on the rise: Western Union

Kolkata, Aug. 25

There has been a change in the pattern of job-related emigration out of India, creating new sources of remittances into the country.

Bihar, Uttar Pradesh, West Bengal and North Eastern States have emerged as new pockets attracting remittances from outside, according to Mr Anil Kapur, Managing Director, South and South East Asia, Western Union. (NYSE:WU) Traditionally, Kerala and Punjab accounted for major chunk of the total foreign remittances into the country. Read more

Western Union ups rural reach, ropes in Bandhan Microfinance

As part of its efforts to increase its rural business, money transfer services leader Western Union has roped in leading microfinance firm Bandhan to hawk its service across the hinterlands.

Under an agreement inked between Western Union India's principal agent Weizmann Forex and Bandhan in Kolkata today, the microfiance firm will activate 800 of its locations by the year-end, a Western Union release said here today.

"With the addition of Bandhan, which has a customer base of over 2.8 million, we hope to further reinforce our rural presence shortly," Western Union Managing Director for South and Southeast Asia Anil Kapur said, adding the alliance further reinforces our outreach to rural consumers helping them in turn to access global money transfer services. Read more

MFIC, Smart Communications partner to expand remittance delivery in Philippines

US-based Microfinance International Corporation (MFIC) has partnered with Philippine mobile operator Smart Communications to expand its remittances delivery in the Philippines.

Smart will pay-out the remittances sent through MFIC’s money transfer solution ARIAS, originated by financial service providers in the US, Japan and Europe.

According to MFIC, remittances to Smart Money account may be received through the various encashment channels of Smart Money which includes Smart Wireless Centers, ATMs, and Smart Money Centers and agents all over the Philippines.

MFIC president and CEO Atsumasa Tochisako said ARIAS has advantage in its adaptability to various interfaces, making it easy for us to partner with a company like Smart whose role is increasingly important in the payment sector.

“It is our commitment to expand the delivery of affordable and secure money transfer services in a wider geographic area, and mobile phone will play the key role to make it happen,” Tochisako said. Source

Remittances, Migration and Other Panaceas: The End of Outward-Looking Development Strategies

In a 1965 essay, the great development economist Albert Hirschman bemoaned the tendency of those in his profession to look for the next panacea. Unfortunately, various panaceas have come in and out of fashion since Hirschman wrote.

During three decades of neo-liberalism, development economists and policymakers have celebrated three inter-related strategies: (1) free markets, (2) private ownership, and (3) private international capital flows. The latter refers to several types of flows—loans by foreign banks, foreign direct investment (i.e., the purchase of more than 10% of the assets of a foreign corporation), portfolio investment (i.e., the purchase of foreign financial assets, such as stocks or bonds), and worker remittances (i.e., the funds that migrant workers send home generally to their families, but sometimes also send collectively through "home town associations" to fund infrastructure projects in their towns of origin). Policy in the neo-liberal era sought to maximize all four of these financial flows. Read more

Deal of the day: money-transfer companies evolve, as remittances rebound

Don’t underestimate remittances - according to the World Bank, developing countries receive two-thirds as much money from their workers abroad as they do from foreign direct investors.

But the money-transfer industry is fragmented, and needs to adapt to new competition, regulations and technologies. So like other sectors, it’s using the aftermath of the Great Recession to consolidate. Read more

Introduction To Remittances

Each year, billions of dollars are sent by migrant workers to their home countries, with some estimates putting the total value of remittances at more than $200 billion. For some countries, remittances make up a sizable portion of GDP. How do remittances work, and what are some of the pitfalls that developing countries face when dealing with such large inflows of cash? Read more

PHILIPPINES: Remittances rise 6.9% to $9.1 billion in H1

MANILA, Philippines - Money sent home by overseas Filipinos grew 6.9% in the first half of the year to $9.1 billion, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

In June alone, remittances reached $1.6 billion, a year-on-year expansion of 8.3%.

Money remitted came mostly from the US, Canada, Saudi Arabia, Japan, United Kingdom, Singapore, United Arab Emirates and Italy. Read more

CAMBODIA: With few local jobs, more Cambodians focused on migration

Phnom Penh ­ Cambodians have changed their approach to labour migration, says the International Organization for Migration (IOM). These days an increasing number are using it as a way to improve their livelihoods rather than as a short-term coping strategy.

The IOM says this finding, contained in a new report, means the clock is ticking for Phnom Penh to change its current view of migration as a convenient way to absorb the 300,000 people a year entering the stagnant local job market. Read more

PHILIPPINES: BSP eases FX policy restrictions; banks may engage in ‘constructive remittances’

The Bangko Sentral ng Pilipinas (BSP) has further liberalized foreign exchange (FX) policy restrictions by allowing banks to engage in so-called “constructive remittances” to encourage more outward investments.

Based on documents, the BSP’s policy-making body the Monetary Board issued Circular No. 692 relaxing the approval conditions for banks wanting to establish or acquire subsidiaries or affiliates abroad. BSP Deputy Governor Nestor A. Espenilla Jr. signed the documents, which allowed dividends to be reinvested with foreign correspondent banks based overseas. Read more

MFI Enters Into Strategic Partnership With Banco Industrial

Microfinance International (MFI) has entered a strategic partnership with Banco Industrial, a Guatemala-based commercial bank, to jointly serve transnational families in Guatemala.

According to MFI, the partnership will encompass a range of services to meet diverse financial needs of transnational families comprising remittance senders in the US and recipients in Guatemala.

The two parties will first build a remittance platform connecting Banco Industrial and ARIAS, MFI’s money transfer solution. Banco Industrial will pay out remittances sent through ARIAS that are originated by US depository institutions that use FEDGlobal, Federa Reserve Banks’ cross-border payment service. Originators also include Alante Financial, MFI’s wholly owned retail financial service centers targeted to immigrants.

Atsumasa Tochisako, president and CEO of MFI, said: “It is a great pleasure to partner with Banco Industrial, a reputable and trusted institution among the people in Central America. We hope that this partnership will enable us to extend more value-added services not only in Guatemala, but also in other Central American countries in near future, particularly to Hondurans and Salvadorans together with Banco Industrial.”

Since May 2010, MFI and Banco Industrial have offered transnational mortgage loan, which enables Guatemalans living in the US to finance their purchase of home in Guatemala. Source

Kyrgyz, Tajik migrant worker remittances rise

BISHKEK – Migrant worker remittances, a crucial source of income for Central Asia, have grown in Kyrgyzstan and Tajikistan compared to last year, EurasiaNet reported August 3.

Remittances to Kyrgyzstan (at US $398.5m) were 32.6% higher in the first half of 2010 than during the same period in 2009, according to data published by the National Bank of Kyrgyzstan in a spreadsheet.

Remittances to Tajikistan during the first four months of 2010 rose 24% compared to the same period in 2009, UN Development Programme economist Ben Slay wrote. Source

Kenyans increase remittances from diaspora

Remittances from Kenyans working abroad rose 15 per cent to $52 million (Sh4.1 billion) in June compared to the same month last year, boosting the shilling and domestic demand in an economy that is witnessing sluggish retail numbers.

Kenyans sent a total of $300.2 million (Sh24 billion) in the six months to June from $291.8 million (Sh23.3 billion) in the same period a year earlier, says Central Bank of Kenya (CBK).

“Remittances through June continue to track the long run average of $50 million per month,” Charles Gitari Koori, Central Bank of Kenya’s director of research, said in a monthly report. Read more

Mexico group brings help, discouragement to migrants to US

NOGALES, Mexico—A letter written by a migrant before he died in the desert is one tool used by a Mexican group which tries to persuade its compatriots to think twice about crossing the border into Arizona.

"My name is Arturo Gomez. The people trafficker tricked us. He said he knew a lot but it wasn't true. There were 14 of us, we can't all endure this. Goodbye," read the crumpled letter found eight years ago near 14 bodies in the scorching desert between Arizona, in the United States, and the Mexican state of Sonora.

The Beta Group also informs migrants of their rights and rescues wounded and lost people on the vast 2,000-mile (3,200-kilometer) US-Mexico border. Read more

MoneyGram International Signs State Savings Bank of the Russian Federation as New Agent

MoneyGram International (NYSE: MGI), a leading global money transfer company, announces it has signed a new agent in Russia, the Savings Bank of the Russian Federation (Sberbank). Sberbank, headquartered in Moscow, is the oldest and largest bank in Russia and Eastern Europe and is expected to be MoneyGram’s largest agent in the region. The bank will introduce MoneyGram services initially in more than 7,000 locations with plans to expand to 10,000 bank branches.

“Joining MoneyGram’s international agent network will provide us the opportunity to meet our customer needs by supplementing our services and growing our international money transfer business to CIS and other markets around the world,” said Denis Bugrov, first deputy chairman of the board of Sberbank. “We look forward to a successful partnership with MoneyGram.” Read more

Remittances From Europe Sink Amid Recession

By Brian Blackstone

The 2008/2009 recession took a big bite out of a vital source of cash for some countries: worker remittances from Europe.

According to a Eurostat report, remittance outflows–which come mainly via migrant workers from outside of the EU who send money home–fell in 2009 after growing steadily since 2004.

Remittances to countries outside the EU–which make up about 70% of the total–shrank by 1 billion euros last year to 21.5 billion euros, after nearly doubling between 2004 and 2008. Remittances to other EU countries fell even more sharply. Read more

U.S. money transfer firms explore new routes in Asia

Asia, with its large migrant population, promises a huge growth market for U.S. payment service firms, but for pure-play companies like Western Union and MoneyGram International, that's not the end.

They are busy looking for newer avenues ranging from domestic services to mobile transfers as they try and win more customer confidence, even though informal channels rampant in the region pose a big challenge.

That Asian countries are major recipients of remittances is no secret, but apart from inter-continental transfers, the domestic market within Asia, especially in the southeast, is also opening up as more people cross borders within the region for education and in search of jobs. Read more

India Post global money transfer comes under ED scanner

NEW DELHI: Global money transfer and banking operations of the country's postal department are being scanned by the Enforcement Directorate and other agencies for suspected terror-financing and Hawala-like transactions.

At present, there are no other official channels, besides the pure banking route, to transfer or receive money from abroad.

The Department of Posts had started this service in association with US-based Western Union Financial Services in April 2001 and customers can send or receive money from 205 countries. Read more

Stiff competition lowers remittance fees by 35% - BSP

Stiff competition among money transfer agents and the entry of players charging low fees brought the cost of money transfers down by as much as 35 percent, the Bangko Sentral ng Pilipinas said Tuesday.

Market leader Western Union cut its transaction charges by some 35 percent as a new breed of competitors started using mobile technology to their advantage, Bangko Sentral Deputy Gov. Nestor Espenilla Jr. said in an interview with reporters

Western Union is now charging clients as low as P65 per P1,000 of domestic remittances from more than P100, according to Espenilla. Read more

Tongan economy faces year of "extraordinary need"

FACED with continuing drops in remittances and two years of negative growth, Tonga's financial planners have turned to aid donors to support the national budget for the new financial year 2010-11, in order to meet a current deficit of $12.1 million pa'anga, as well as multi-million pa'anga development budget needs.

The National Budget totaling $205.6 million, presented to the Tonga Legislative Assembly on June 14 and passed by the House this week on June 29, underscores the great financial difficulties that Tonga continues to face. Read more

Mexico's Family Remittances Rose 12% In May To $2.13 Billion

MEXICO CITY -(Dow Jones)- Remittances received by Mexicans from family members living abroad grew in May at the fastest pace in nearly four years, the Bank of Mexico said Thursday.

Mexico's family remittances rose 12% in May from a year ago to $2.13 billion, according to data published on the central bank's website.

May was the second consecutive month that remittances rose in annual terms, following a 17-month slide amid the economic recession in the U.S., where the majority of Mexican migrants seek employment. Read more

E. Europe's migrants and farmilies left behind hit by troubles in richer Western Europe

CHISINAU, Moldova (AP) — Many of Europe's poorest migrant workers are sending less money home — another blow delivered to the continent's east by global economic and financial turmoil.

Probably worst off is Moldova, Europe's poorest country according to the World Bank. There, money sent by people who left to find work made up an astonishing 30 percent of the economy of $6.6 billion (€5.41 billion) just two years ago but fell last year to 22 percent.

The Chicus are a case in point. Like many Moldovans, they realized that they could hardly afford to raise a family from local salaries. Read more

MoneyGram makes transfer deal with Abu Dhabi bank

MoneyGram International Inc. said Thursday it has signed a deal with National Bank of Abu Dhabi for international money transfer services via mobile phones.

The deal makes the money transfer capability available to the bank's customers throughout the United Arab Emirates.

Financial details of the deal were not disclosed.

The World Bank has recently estimated remittances from the UAE to be between $15 billion and $20 billion in 2009 with potential to continue growing in the coming years. In addition, the UAE has one of the highest mobile phone penetration rates in the world, MoneyGram said.

Shares of MoneyGram rose 3 cents to close at $2.62.

Sending that Cash Home

Immigration has always been a controversial issue and no more so than in the twenty-first century, when the opportunities to cross the world in search of improved economic conditions have significantly increased. Yet beyond providing a source of cheap labour and fodder for right-wing tabloids, what effects do the movements of these people actually have? We often hear speak about their impact on the countries that host them, but what about those on their countries of origin? Read more

Kenyan remittances up 4 pct yr/yr to $51.2 mln in May

NAIROBI (Reuters) - Kenyan remittances rose 4 percent to $51.172 million in May compared with the same month last year, central bank said on Friday.

Total remittances in the first five months of this year stood at $247.7 million compared with $236.5 million in the same period in 2009.

"Remittance transfers were $51.2 million in May 2010 compared with $52.7 million in April 2010. However, remittances in May continued to be above the trend average of $50 million per month," central bank said.

Money sent home by Kenyans abroad is a major source of foreign exchange behind agricultural exports and tourism. Source

Predicting the Future of Remittances to Vietnam

Money streaming into Vietnam has a huge impact on whoever it is receiving the money. Whether it be a low-income family in the Southern Delta to big-name banks in Saigon, remittance offers a big boost to the country’s economy.

Approximately 11.2% of Vietnam’s GDP (gross domestic product) comes from remittance. Though this may appear to be a low figure, it is huge compared to Mexico which is the highest recipient for money transferred in, yet just 4% of the country’s GDP is due to remittance.

Since restrictions on remittance to Vietnam are so few and far-between, many foreigners began investing in savings or businesses in the area, which in turn sparked the economy. In major cities you will find new buildings and businesses those investors have begun pouring their money into with the help of unlimited tax-free transfers. Read more