The International Day of Family Remittances (IDFR) is celebrated on 16 June each year. The IDFR recognizes the crucial contribution of over 200 million migrant workers who send money to over 800 million family members in low- and middle-income countries. It highlights the resilience of migrant workers in the face of uncertainty while promoting reduced transfer costs and greater financial inclusion through remittances.
Remittances are a lifeline to the developing world and are used to pay for basic household needs, education and entrepreneurship. While individual remittances may be relatively small (the average remittance is US$200-US$300 a month), collectively, these flows are three times greater than global official development assistance.
Over the past 20 years, remittance flows have increased five-fold. Even during economic downturns, remittances continue to flow as they bind migrants to their families back home, helping them stay afloat. In 2022, migrant workers sent US$626 billion home, a growth of 10.2 percent compared to 2021.
Behavioural shifts among migrants and the diaspora—such as sending savings and using mobile transfers—have further bolstered remittances. The COVID-19 pandemic catalysed the use of formal remittances, with mobile remittances alone increasing by 48 per cent in 2021. Digitalization is less costly than cash transfers and has advanced the financial inclusion of migrants and their families.
“Making the most of remittances and diaspora investments can, paradoxically, curb the need for more to migrate. These flows are great contributors to the wellbeing of millions. Almost US$1.8 billion in remittances are flowing daily to low and middle-income countries, leveraging development opportunities. Half of that amount, US$900 million, is boosting agriculture and rural development” said Álvaro Lario, the President of IFAD at the opening session of the Global Forum on Remittances, Investment and Development (GFRID) in Nairobi today.
Every year, on 16 June, the International Day of Family Remittances (IDFR) is observed to raise further awareness on the abnegation and sacrifice of migrant workers, who support their families and communities of origin through the money they send back home, particularly in these times of crisis.
For some time now, it has been difficult to find well-paid work in Moldova. Most of the good jobs available are concentrated in the cities, resulting in significant migration out of the country’s rural areas.
The International Day of Family Remittances is observed every year on 16 June in recognition of the fundamental contribution of migrant workers to their families and communities back home and to the sustainable development of their countries of origin.
This webinar will launch the International Day of Family Remittances (IDFR) campaign and will set the stage for the upcoming Global Forum on Remittances, Investment and Development (GFRID) Summit 2023.