The remittance of money is the sending of money between two different geographical places, although it is generally assumed that this name refers to the money transfers or remittances that an emigrant individual makes to their country of origin and, more specifically, to their families. .
These types of money transfer operations experienced great growth with the Industrial Revolution, although they reached their great boom worldwide thanks to the phenomenon of globalization . With the flow of workers between countries or continents, it became necessary for these individuals to make money remittances to their families, who normally remained in their regions of origin and in most cases had this as the only source of income, since the Emigrant often used to be the father or head of the family.
The bulk of remittances that occur year after year at the international level represents a significant flow of money, especially in periods of time marked by high rates of migratory phenomena caused by times of economic recessions , for example.
Due to this fact, it is logical to deduce that the countries that generally receive the greatest amount of remittances are those with the highest volume of emigrant population and working in other countries . In other words, we would normally speak of regions with political, social or economic conflicts that are going through difficult situations and whose inhabitants are often forced to seek an occupation outside their borders. In contrast, countries that experience the highest volume of remittances are generally the most prosperous and job- creating places .
The existence of money remittances is so important that it is estimated that this type of economic operations is the second most important financial movement, after international humanitarian aid. Thanks to the existence of remittances at a global level, capital keeps moving internationally, becoming one of the most common causes of the transfer of money between different areas of the planet .
Variables that affect the sending of remittances
- Exchange rates between currencies
- The charges and taxes of the country from which the shipment is made
- Own costs or commissions for the service offered by the companies or institutions that participate in the transfer (banks, post agencies or other private companies)
Therefore, depending on the legislation of the countries involved in the operation, the amount of the consignment may vary more or less. Finally, the proliferation of online banking in recent years has made it an increasingly frequent method of sending money internationally