From importance to celebrations, everything you need to know

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Remittances are a vital lifeline for many developing countries. According to the World Bank, remittances to low- and middle-income countries (LMICs) will reach a record $630 billion this year.

Representative image. Reuters

The world celebrates International Day of Family Remittances (IDFR) on June 16 to recognize the importance of the more than 200 million migrant workers who send money home. The day highlights the resilience of these migrant workers in the face of disasters, economic insecurity, and environmental and pandemic-related challenges.

According to the United Nations, more than 800 million people receive money in the form of remittances abroad from their relatives. Despite the ongoing COVID-19 pandemic, people sent over $605 billion in remittances to their families in low- and middle-income countries in 2021.

Celebrations:

International Day of Family Remittances will be marked by the International Fund for Agricultural Development (IFAD) through in-person events as part of its biannual “Recovery and Resilience through Digital and Financial Inclusion” campaign.

Importance:

Remittances are a vital lifeline for many developing countries. According to the UN, remittances cover several basic household needs. They also support skills training and help people access more opportunities through education and entrepreneurship. “These resources are proving transformational for households and local communities, enabling many families to achieve their ‘own SDGs’,” according to the global body.

Remittances contribute to the Sustainable Development Goals at household, community, national and international levels. They help reduce poverty, mitigate the negative impact resulting from climate change and also ensure collaboration across all sectors involved in sending money.

The crucial contribution of migrant workers, in the form of remittances and investments, has also been recognized in the Global Compact for Safe, Orderly and Regular Migration. Adopted in December 2018, it calls for specific actions to maximize the impact of remittances.

Discounts in 2022:

According to the World Bank, remittances to low- and middle-income countries (LMICs) will hit a record $630 billion this year. Ukraine, which is the largest recipient in Europe and Central Asia, will see its remittances increase by more than 20%. However, outflows to many Central Asian countries, of which Russia is the main source, are likely to decline dramatically.

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