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UK and Switzerland call for countries to work together
to make sure people can continue sending money to relatives in
other countries during coronavirus outbreak
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Such remittances account for more than 5% of GDP in at
least 60 developing countries
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World Bank predicts remittances to low and middle
income countries will fall by 20% or $110 billion in
2020
The UK and Switzerland today called for greater global
collaboration to make sure diaspora communities around the world
can continue to send financial support to their families in
developing countries.
The joint call highlighted the urgent need for people to be able
to continue accessing money transfer services, and for
governments to make sure those funds reach those reliant on this
support.
Both the UK and Switzerland are also urging countries to support
greater access to digital remittance services and to declare
remittances an essential financial service. They are also
encouraging remittance service providers to reduce costs and fees
for people making payments.
Money sent by individuals to family and friends living in low and
middle income countries totalled $554bn in 2019 and is a vital
lifeline in many developing countries, boosting economic
development and lifting people out of poverty.
But coronavirus is already having a big impact, with a drop in
the wages of migrant workers and coronavirus restrictions making
it more difficult for people to access money transfer services.
The World Bank predicts that remittances to low and middle income
countries will fall by 20% in 2020, totalling $110 billion.
A drop of this size would have a severe impact on countries where
many people are already facing destitution and even starvation as
a result of the huge economic impact of the pandemic. Remittances
account for more than 5% of GDP for at least 60 developing
countries. Life in lockdown is making it harder to send and
receive funds.
International Development Secretary said:
“The coronavirus pandemic means we are all concerned about how
our family and friends here and overseas are coping. That’s why
we’re making it easier for diaspora communities in the UK and
other countries to continue to transfer money to their relatives.
“This will be lifesaving for some families in developing
countries where coronavirus is making a lack of food and
healthcare, and extreme poverty, even worse. We are helping to
prevent fragile economies from facing potential collapse during
the pandemic.”
Federal Councillor Ignazio Cassis, head of the Swiss Federal
Department of Foreign Affairs added:
“Remittances are important, but difficult because of COVID-19. So
let’s make sure those barriers are removed worldwide! New
technologies can help us here.”
Previous UK aid support is already helping to make money
transfers easier, by helping 65 million people in the poorest
countries access digital financial services so they can receive
funds via their mobile phones or online.
UK aid support has also helped to give two million more people
access to digital remittance services so they can send and
receive money from home.
Today’s call by the UK and Switzerland was backed by partners,
including the World Bank, the UN Capital Development Fund, UN
Development Programme and the International Organisation for
Migration. A number of countries have already joined, including
Ecuador, Egypt, El Salvador, Jamaica, Mexico, Nigeria and
Pakistan.
The UK Government has made it clear that in the UK people can
continue to visit remittance centres should they need to, while
observing social distancing and staying safe. Digital money
transfer services are also available.
