If we talk about remittances, the idea of migrants earning in different countries come to our mind. Well, as fascinating as it sounds, the international remittances have brought a multitude of benefits for everyone on the planet.
In 2015, a total of 601$ billion were reported to be transferred internationally. However, in 2018, this figure reached 697$ billion, as reported by the World Bank.
Benefits To The Economy
It is no wrong to say that if promoted and utilized efficiently, the money transfer services can go up to new heights in the peak months of transfers.
There is a multitude of benefits to Ghana due to international income. It is helping in reducing the current account deficit. Due to the investment in housing, it has a positive impact on the state’s economy.
Moreover, Different types of expenditures such as living, education, bills, money consumption and lifestyle of the Ghanaians can be met by effectively utilizing the international income. Thereby, enhancing the services of IMTO in Ghana can help the state in flourishing their economy.
The facilities to send money quickly online have influenced the overseas payment transfers greatly. In Ghana, the poverty rate is very prominent as the other African States.
Most of the Ghanaians are living beneath the poverty line, which has resulted in a higher migration rate. These factors have made remittances an important source of income for Ghana. The remittance flow of this state is explained below.
Due to the unavailability of correct data and a high trend of using informal channels to send money globally, from Ghana, it is tough to collect a 100% effective estimate. But if we talk about transfers through formal channels, then they were reported to be around 2$ billion in 2012.
International Remittance Growth in Ghana
A significant increase was reported in international remittances in Ghana. The 1.5$ billion transfers in 2005 grew up to 2.1$ billion in 2010, and then it elevated up to 5.0$ billion in 2015.
The abrupt increase in remittances was incurred due to the increase informal channels to send money to Ghana, the ease to send money online and the efficient services of many money transfer companies such as ACE Money Transfer.
Many migrants confronted various frauds/scams and unreliability by using informal channels for money transfers, which resulted in high use of MTC’s. Most of the transfers to Ghana were made from European countries such as the United States.
After the US, middle east countries such as the United Arab Emirates also have an undoubtful role in money transfers to Ghana.
In recent 2-3 years, the destinations for Ghanaians have increased notably, and now they are working in different corners of the world.
International income does not stay constant throughout the year. An increase in remittance flow was reported between November and January due to the Christmas festivities.
Other than religious occasions, transfers also increase during the time of school fee payments and at the start or end of a month. Monday and Thursday are usually the slowest days for international transfers.