International remittance in times of COVID-19: Challenges, opportunities, and solutions

 The COVID-19 pandemic is now perhaps regarded as an economic catastrophe more than a health catastrophe. It’s due to the fact it has adversely impacted almost all the business sectors around the world.

Giant corporates announcing layoffs and stopping their operations in many countries shows how big of an impact of this pandemic has had on the world economy in general.



COVID-19 pandemic has also impacted the payment industry, especially the global remittances which are considered as one of the key forms of financial inflows in the developing nations. According to the World Bank, there has been a sharp decline of around 20 per cent in the global remittances due to COVID-19 pandemic.

This fall is considered as the sharpest decline in recent history and the main reason behind it is the drop in the wages and salaries of migrant workers.

Here, it’s important to understand that the migrant workers are most vulnerable to lose their employment during such an economic crisis taking place in the host country. If we talk about the remittances to the LMICs (low and middle-income countries) then there has been an estimated fall of 19.7 per cent to $445 billion.

READ MORE :  COVID-19: Challenges, opportunities, and solutions

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