What is International Remittance Day?

25 May 2023 - Category: Blog /
international remittance day

In the past decade, there has been a steady increase in the number of economic immigrants  — those who are born in one country but work in another. These immigrants often work to support their loved ones back home. They work hard, cut down on expenses and save, in order to send money to their family.

In their quest to improve the lives of those back in their homeland, they continue to make sacrifices. But what measures are in place to ensure their sacrifices are not in vain?

Exchange rates make all the difference. Immigrants can send home small amounts, which are no longer small once converted into their native currency. The money received is often used to meet the necessities and to improve the living standards of those back at home.

According to the United Nations (UN), over 200 million people stay away from their homeland to fend for 800 million others, back at home, largely dependent on them for their survival.

This narrative is common and now it is rightly being celebrated.

So, what is International Remittance Day?

And why is it important to immigrants and businesses like Small World?

The beginning of the International Day of Family Remittances (IDFR)

The UN wanted to recognise the efforts of immigrants who work to give their families and community a better life. As a result of a resolution adopted by the General Assembly of the UN in 2018, the 16th June was declared to be the International Day of Family Remittances (IDFR).

However, it began earlier than that. The first IDFR was celebrated on 16th June 2015, after it was accepted by all the members of the International Fund for Agricultural Development (IFAD). The IFAD is a UN wing that works towards the end of poverty and hunger and is focused on developing countries.

Since the immigrants support close to a billion others and help improve their living standards, the UN Agency has dedicated 16th June, in their honour. It is a day to celebrate! On this day, public and private sector organisations join hands in support of economic immigrants and celebrate their contribution.

What does ‘Remittance’ mean?

Remittance is a strange word, but the meaning is quite simple. Remittance is the money that immigrants earn in a foreign land, but choose to send back to their homeland.

Millions of immigrants move away from their place of birth, each year, in search of better career prospects. Often, they choose to move to developed countries in the hope of sending some money back home. They hope to uplift their loved ones and provide support through good exchange rates. At Small World, we always compare our exchange rates to make sure your money goes a long way.

Generally, remittances aren't huge. They can be as little as a few hundred dollars. But every Dollar, Euro or GBP counts. For example, $100 turns out to be quite a decent amount when converted into the Philippine peso or the Pakistani Rupee.

These small contributions help improve the lives of millions of families.

With the help of remittance, many immigrants are able to provide better living standards and education for their children.

Why is Remittance important?

For immigrant workers, the recent years have not been easy. Remittance payments remain vitally important for many immigrants around the world.

The money transferred by economic immigrants is believed to have supported over 800 million people in their homeland. Most individual transfers range between 100 and 200 US Dollars. This turns out to be a reasonable amount when converted into the currencies of developing countries. In fact, in most cases, these small remittances constitute close to 60 percent of the family’s income.

Close to 1 billion people are dependent on remittances for their livelihood, and that number is increasing each day.

A couple of decades ago, the numbers were negligible, but have considerably increased ever since. Most migrants move out of their homeland, not as a choice but because of adverse circumstances. In most cases, they relocate to fulfil the necessities of their families — responsibilities that they must shoulder.

The UN is focussed on changing this and seems to be keen on exploring ways to make immigration a choice. To accomplish this the UN seeks the support of the public and private sector.

The situation is still not good enough. Close to 200 million immigrants are forced to fend for their families, by moving out of their country of birth — not by choice but for their necessities. So, on IFDR, the UN urges industry leaders to join hands and promote this day, and create awareness.

Celebrating International Remittance Day

Small World, your very own financial services provider is honoured to have enabled transfers for immigrants, worldwide. We are proud of our customers who transfer money to their loved ones and provide them with a better life.

Migration is not a new phenomenon. We have always migrated in search of greener pastures. However, currently economic immigrants relocate to countries with stronger economies, so that they can help those back at home, despite staying far away from them. In doing so, they counter countless issues such as linguistic barriers, racism and much more.

Celebrating International Remittance Day can help shed light on these issues and bolster support for hard-working immigrants!

Small World can help!

Small World recognises the daily selfless sacrifices that so many immigrant workers make. The decision to relocate in order to improve the lives of your family is monumental and requires tremendous willpower and courage. That’s why Small World wants to help make the lives of immigrants that little be easier

We are a money transfer service that enables people to send and receive money quickly and securely. For many years we have been operating on a global scale to help people send money home and support their loved ones.

Small World appreciates the efforts of these 200 million economic immigrants who support close to a billion people. We look forward to providing ongoing support, secure transactions and the best exchange rates.

We will help to make sure your family gets the most out of your hard-earned money.

Your first transfer is always free of charge with us.

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