Remittance Keeps Families together at Christmas
The globe is witnessing the start of the peak festive trading season, Black Friday. It is hoped that this year's Black Friday will be different from 2020, heavily impacted as it was by COVID-19 and lockdown. It's that time of the year where people rejoice together with their loved ones. It was noted that Kenyans living abroad are sending more during the festive season to support loved ones over the Christmas period. Even though expats are living in another nation are sending dollars with care to their families.
According to the report, families rely more on the extra funds transferred during the season to enjoy Christmas. ANTOINETTE MCKENZIE, a 32-year-old mother of an expat, depends on remittances in mid-December to ensure her Christmas is indeed merry. If the mother does not receive the funds, she will be unable to host her annual Christmas dinner. McKenzie added that the transfer fees from the United States of America are traditionally higher than what is sent for the other months. The self-employed expat added that the COVID-19 pandemic has also brought home the importance of remittances as a social safety net.
Stimulate the economy
Economist Stephen Forbes stated that apart from being a social safety net, remittances at Christmas encourages to stimulate the economy since more funds to spend. The report revealed that remittances during Christmas touch up to 70 to 80 percent higher than some other months. Normally, recipients pay bills, provide for their families or other necessities. At Christmas, there is an increase in volume, whether, from those who receive it just this time of the year, or those who receive a little more, it profits the economy because it acts as a stimulus. In addition, Christmas is vital for people to maintain family bonds.
During Christmas, many families look
forward to spending time with each other, and it is possible when funds are
sent from abroad. Therefore, pandemic limits the family to travel and spend
good time with loved ones and funds from abroad help offset some of the
expenses associated with planning and hosting the Christmas gathering.
Sometimes it becomes challenging for many families if they don't receive funds
from abroad. Simultaneously, remittances keep families connected.
World Bank's Desk
Diaspora remittances are on the rise, with a high volume expected this month. World Bank predicts a robust 7.3 per cent increase to low- and middle-income countries. The report declared that Kenyan market is currently witnessing strong demand due to the upcoming holidays.
It enables customers to receive money on mobile,
bank accounts in local currency or US dollars, cash picks up, and even airtime.
The firm's transaction fees for international transfers in over 450 of its
larger corridors in Africa varies depending on the regulatory limits. Generally
amounts in the $100 range for mobile money as people tend to send more
frequently to different recipients. The price cuts had a positive impact on the
market as it has made sending money more affordable. Many money service
providers are offering zero fees for all the corridors.
Conclusion
The World Bank predicts strong remittances to low- and middle-income countries, reaching $589 billion (Sh66.2 trillion) in 2021. The central bank adds that remittance benefits many families. They employ the money to pay utilities, buy food, medicines, provide pocket money, help with Christmas shopping, and provide dinners. In some cases, a portion of that money cover expenses for the following holiday season. Remittance inflows into Jamaica for December 2020 was US$282.4 million, which was almost twice the amount sent back for April the month that recorded the lowest inflow.
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