Diaspora remittance to developing countries hits $435bn
27 October 2015, 10:02
Nairobi - Diaspora remittance to developing countries, are projected to rise to $435 billion in 2015, a two per cent increase from previous year, the World Bank has said.
The bank, however, said the growth rate remittances would fall from 3.3 per cent in 2014 to two per cent in 2015.
“Remittances to developing countries are expected to rise by about four per cent in 2016 and 2017, buoyed by the continuing recovery in the United States and modest acceleration of economic activity in Europe,” it said in the migration and remittance October 2015 brief.
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Central Bank of Kenya’s data shows diaspora remittance inflows to Kenya increased by 3.2 per cent to $132.9 million in August 2015 to $128.8 million recorded in the same period last year.
According to World Bank, the global average cost of sending $200 remained at about 7.7 per cent in the second quarter of 2015, adding that the remittance costs varied significantly by region, and within region by corridor.
“A major risk to the downward trajectory of remittance costs arises from the closure of accounts of money transfer operations by correspondent banks due to concerns related to regulatory compliance. Addressing these concerns would require a clearer distinction between the risks associated with remittance transactions and those with other financial transactions,” it said.
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