NEW YORK—Amid the global onslaught of the coronavirus disease 2019 (Covid-19), keeping remittances flowing while lowering transaction costs can help migrants improve the lives and well-being of their families, as well as their communities of origin, as they contribute to the attainment of the United Nations’ (UN) Sustainable Development Goals (SDGs).
This was the main message of this year’s celebration of the International Day of Family Remittances, co-convened by the governments of the Philippines, Guatemala, Madagascar, Moldova and the International Fund for Agricultural Development (IFAD) in mid-June.
Speaking during the event, Secretary of Foreign Affairs (SFA) Teodoro L. Locsin Jr. highlighted the Philippines’s policies and measures to lower remittance costs and digitalize financial transactions against the backdrop of the pandemic and its multidimensional impacts around 272 million international migrants globally.
With an expected drop in remittances to the country due to displaced and repatriated overseas Filipino workers, Locsin emphasized that “our advocacy in keeping remittances is focused on maximizing benefits to senders and receivers of remittances.”
During the community quarantine, the Philippine government classified remittance-service providers as essential as they were allowed to operate even during the lockdown. It also provided further assistance to RSPs when the Central Bank waived their fees and charges for financial institutions that offer digital channels for, among others, social-benefit transfers and remittances. The relief was provided for the duration of the community quarantine period.
In pushing for lower remittance costs, especially on furthering the deployment of digital technology, the Philippines, prior to the pandemic, had jump-started reforms in the digital banking system in pursuit of the SDGs target of lowering remittance costs.
The National Retail Payment System is one of the government’s initiatives that lower remittance costs. An initiative of the Central Bank of the Philippines, the NRPS is an electronic money scheme aiming to directly address market segmentation by creating a central infrastructure that is accessible to all industry players, much like a shared highway for stakeholders to deliver their services on a common and level-up playing field.
Guatemala’s Foreign Affairs Minister Ambassador Brolo Vila, United Kingdom’s Minister for Africa James Duddridge, Moldova’s Regional Development and Environment Minister of Agriculture Ion Perju, Chargé ďAffaires and Deputy Permanent Representative of Madagascar to the UN Vero Henintosa Andriamiarisoa, together with Associate Vice President of IFAD Paul Winters, also participated in the commemoration event.
The Philippines, together with Algeria, Guatemala and Madagascar led the adoption by the 72nd general assembly of the landmark resolution on June 12, 2018, that declared June 16 as the International Day of Family Remittances. DFA
Image credits: Phil. Mission to the UN FB Page