Download Indicator Remittance cost - average cost per $200 sent. Definition

Indicator
Remittance cost ‐ average cost per $200 sent. Definition Migrant remittances are defined as the sum of workers’ remittances, compensation of employees, and migrants’ transfers. Goal and target addressed To reduce transaction costs ‐ 5X5 Objective The Global Remittances Working Group, during the year of the Italian Presidency, identified the goal of reducing the cost of remittances by five percentage points in five years. The working group's recommendation received strong support at the G8 Heads of State Summit in L'Aquila in June 2009. "…from the present 10% to 5% in 5 years through enhanced information, transparency, competition and cooperation with partners,… “ Rationale
The Global Remittances Working Group, during the year of the Italian Presidency, identified the goal of reducing the cost of remittances by five percentage points in five years. The working group's recommendation received strong support at the G8 Heads of State Summit in L'Aquila in June 2009. For the first time at international level, the G8 Summit at L’Aquila identified and adopted a clear and quantified goal. The G8 Final Declaration on Responsible Leadership for a Sustainable Future, in paragraph 134, states: "Given the development impact of remittance flows, we will facilitate a more efficient transfer and improved use of remittances and enhance cooperation between national and international organizations, in order to implement the recommendations of the 2007 Berlin G8 Conference and of the Global Remittances Working Group established in 2009 and coordinated by the World Bank. We will aim to make financial services more accessible to migrants and to those who receive remittances in the developing world. We will work to achieve in particular the objective of a reduction of the global average costs of transferring remittances from the present 10% to 5% in 5 years through enhanced information, transparency, competition and cooperation with partners, generating a significant net increase in income for migrants and their families in the developing world." Method of computation
See world bank methodology http://remittanceprices.worldbank.org/en/methodology Data collection and source; references
World Bank Periodicity of measurement
Yearly Gender and disaggregation issues None Comments and limitations Additional details on the methodology used for collecting data are as follows: Amounts: generally $200 Transfer fee: This fee usually represents the charge the sender pays at the initiation point. In some cases, there may be fees and taxes charged at the destination. Exchange Rate Fee: An important portion of the remittance cost is the exchange rate spread, which is not quoted in the transfer fee. Product: The database covers different forms of transactions. Speed of transfer: The speed of transfer is the time needed for the remittance to be available for the receiver Network coverage: Description of the network coverage in the receiving country. This additional variable complements the overall picture for price and convenience of the service offered by each RSP. The following categories are used to describe RSP coverage: nationwide, urban only, rural only, main city, major cities. National or international agency World Bank IMF