Tunis/Tunisia — With the significant decline in money sent home by migrants due to the impacts of the COVID-19 pandemic, the United Nations' International Fund for Agricultural Development (IFAD) called on June 16, for governments across the world to declare remittance service providers essential businesses in times of crisis.
The closure of remittance service providers during lockdowns has further exacerbated the ability of migrants to send money back to their families.
"IFAD is now tracking the impact of declining remittances on the 'receiving end' in developing countries, where typical remittances of US$200 to $300 per month account for about 60 per cent of household income," said Pedro de Vasconcelos, the head of IFAD's Financing Facility for Remittances.
"While the reduction in remittances will not fall evenly across countries and communities, the impact is likely be substantial in rural areas where remittances count the most."
"While keeping remittances services running through the crisis will certainly reduce some of the impact of the decline in migrant incomes, there urgently needs to be a greater reform of the system so that after this crisis ends, migrants can send their money home faster, safer and cheaper," said de Vasconcelos.
