Today on 16 June, the International Day of Family Remittances (IDFR) is observed. Adopted by the United Nations General Assembly, this day has been created to recognise the contribution of as many as 200 million migrant workers who send money to their family members, the number of which is as high as 800 million.
Theme of International Day of Family Remittances 2021
The theme of IDFR this year is ‘Recovery and resilience through digital and financial inclusion.’ It was expected that COVID-19 would hit family remittances, however, the resilience in remittance flows was underestimated. According to an official UN blog, there has been only a drop of 1.6 percent in remittances in 2020. It has come down from $548 billion in 2019 to $540 billion.
Significance of International Day of Family Remittances
As per the UN blog, remittances connect migrant workers to their families financially. The day is an important reminder of the fact that through these remittances, several basic needs of many households are fulfilled. The average remittance of $200 to $300 a month matters to the families of migrant workers back home. Over the past few years, the resilience of remittance has been strengthened by the behavioral shift among migrants.
International Day of Family Remittances and digital technology
The UN states that adoption of digital technology by migrant workers was one of the catalysts of remittances in 2020. GSMA reports that in 2020, mobile remittances increased by 65 percent, to $12.7 billion.
The change in the way remittances are received by families was driven by lockdowns. As digital transfers are less expensive than cash transfers, most migrant workers have started using the same. This has promoted the digital inclusion of migrant workers and their families.