Migrants’ Remittances and Financial Inclusion Opportunities for Republic of Yemen
Keywords:
migrants’ remittances, productive investments, micro activitiesAbstract
Yemen received over US $7 Billion in migrants’ remittances in 2013, the majority of which came from the Kingdom of Saudi Arabia. Individuals and households in the country rely on remittances, along with a variety of other sources of income, to help cover daily expenses such as food, housing, health care, and education. That remittances enable them to cover these important areas is no doubt positive. However, it is also important to consider how remittances can build prosperity, rather than simply sustain survival, in households and communities throughout the country.
The answer lies in access to reliable, usable, and affordable financial services, this paper argues. Financial access can magnify and deepen the positive impacts of migrants’ remittances at each stage in the remitting process, from access to reliable and affordable migrants’ remittance services for the sender, to access to banking services and savings strategies for the recipients. Strategies to increase financial access for senders and recipients can have profound development impacts at both the micro and macro levels, especially given the 20.7% expected growth in remittances for 2017.
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