Business Word for the day: Remittance

Money Laundering (47)(64) Transfers can take as little as ten minutes or less to reach the recipient

Wed, 8 Dec 2021 Source: www.ghanaweb.com

The word remittance is derived from remit, which means to send back. It is the amount of money sent to another person as a payment or as a gift.

Broadly speaking, any payment of an invoice or a bill can be called a remittance.

However, the term is often used to describe a sum of money sent by someone working abroad to his or her family back home.

The most common way of making a remittance is by using an electronic payment system through a bank or a money transfer service such as Western Union.

People who use these options are charged a fee. Transfers can take as little as ten minutes or less to reach the recipient.

According to the World Bank's 2019 Migration and Development Brief, $529 billion in remittances were sent to low- and middle-income countries in 2018—an increase of 9.6% over the previous record high of $483 billion in 2017. This figure is significantly larger than the $344 billion of foreign direct investment in these countries, excluding China, in 2018. Including high-income countries, the total amount of remittances jumps to $689 billion, up from $633 billion in 2017.

In Ghana, money transfers have increased significantly in the last two years due to the outbreak of COVID-19 and the increase in the patronage of online services.

Source: www.ghanaweb.com
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