Finance

Top Remittance Corridors of the World

Top Remittance Corridors of the World

Do you know how important remittances are for any country? Remittances are the flow of cash or online money transfer by migrant workers to a migrant’s country for their loved ones. You may assume that remittances are more of a personal investment into the future of a migrant’s family rather than a large sum of money for commercial use being imported. These remittances do not just help the migrants on a personal level but also work as a positive aspect in the economic development of the migrant’s country, eliminating poverty and enhancing the nation’s GDP. So, we cannot just label remittance as money sent to your family; commercial use of the remittance transfer is also used by many customers worldwide. 

An excessive amount of this flow to and from countries is only captured in a few identical channels. Here is a look at 2021’s top remittance corridors of the world.

United Kingdom – Philippines

The United Kingdom holds excellent value for its currency, which is why most locals from other countries migrate to the UK to seek a better future for their families in their home country. That is why 74 thousand Filipinos reside in the United Kingdom, making the UK – Philippines the seventh-largest corridor from 2017-2020. More than 578 million GBP have been remitted to the Philippines from the UK in 2018 – 2020. 0.23% of the country’s GDP comes from international remittances made every year by the Filipino expats living and working in other countries. An overall 2.3% of the total remittances received to the Philippines were sent from the UK during these two years. Like other parts of the world, the Overseas Filipino Workers (OFW) prefer online mobile remittance systems, where ACE Money Transfer is their top of the list choice when they need to send money to Philippines online.

United Arab Emirates – India

The World Bank reported a 3.3 million population of Indian migrant groups in the United Arab Emirates (UAE), making India the largest remitters of UAE. The Indian Diaspora in the UAE is uniquely vast as these migrants are subjected to $18.53 billion in remittances annually. The UAE – India corridor lurched to a 34% growth from 2017 – 2018. The development further reached an immense culmination of 20% more during 2017 – 2020, all during the worst years for the world and its economy. The World Bank declared an increase of remittance from UAE to India by 0.64%. For every $200, the average cost of remittance from UAE to India is 3.45%. Due to the faster-growing expenses of families, migrants find manic free solutions to transfer money to their loved ones or for business purposes. That is why Indian migrants also favor mobile remittance apps such as ACE Money Transfer which they find more convenient because of its faster processing system.

United States of America – Mexico

By 2020, Mexico became the largest bilateral remittance country with the highest succession of inflows from the United States of America. This massive corridor holds first place in the remittance corridor world with a $24 billion flow from 2017 – 2018, growing at $34.70 billion until 2018 making it the largest remittance corridor of the world. For every $200 sent from the US to Mexico, a cost of 4.22% is held, which is a bit lower than the world average remittance fee. Like Indians and the Chinese, the Mexicans have been enticed to the idea of online money transfer through mobile applications such as ACE Money Transfer. The online remittances contributed to lifting up Mexico’s GDP by 2.8%.

Hong Kong – China

Hong Kong and China hold the third-largest remittance corridor as per the World Bank’s data presented in 2017 – 2020. The number of remittances sent from Hong Kong to China passed a $16.34 billion mark which grew in 2019 – 2020 by 5.09%. According to the data collected by the World Bank, as of now, 2.4 million remitters are residing in Hong Kong, paying an average fee of 5% for transferring money to China, where their loved ones reside. Though the remittance from Hong Kong holds a small fraction of the GDP of China by 0.12%, these sources are a crucial part of many families living in China. But due to technical issues, remitters prefer banking systems to send money back home.

United Kingdom – Nigeria

The World Bank’s annual remittance data indicated the highest remittance corridor from the United Kingdom (UK) to Nigeria, roughly GBP 2899 million from 2018 – 2020. But the likely factor is that this flow estimate might be lower than the actual flow due to the unofficial transfer of money from the UK. The reports presented by the World Bank also stated that 114 thousand Nigerian nationals residing in the UK have increased to a 90%, which doubles the flow of this corridor. The United Kingdom (UK) – Nigerian corridor remitted a 15.9% increase in the GDP of Nigeria, all thanks to the remittance sent from the UK. The average cost of remittance from the UK to Nigeria is 4.03%, which is a bit more expensive than the UAE – India. Like other parts of the world, Nigerian migrants also prefer mobile applications such as ACE Money Transfer.

ACE Money Transfer has been an efficient source for migrants as it was first established in the UK in a small shop in Bolton with a few resources, yet making a big difference for 100 plus receiving countries. ACE has advanced and digitized to make remittances easy and unruffled for customers around the world where its website, as well as the mobile remittance application, have risen to be the savior for migrants all around the world. The overseas workers and expats in the UK that have come from different nooks and corners of the world consider ACE Money Transfer a safe haven for remitting funds to their families and friends.

Want to know more about the ACE Money Transfer Application? Join ACE Money Transfer Blog for more details.

Related posts

Bitcoin Trading – the Next Level Trading for the New Generation!

Akarsh Shekhar

Examining Your Options When Trying to Improve Your Financial Situation

Akarsh Shekhar

ETY-Eaton Vance Tax-Managed Diversified Equity Income Fund : Overview

Akarsh Shekhar

Leave a Comment