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May 26, 2020

UK, Switzerland call for greater cooperation on remittance amid Covid-19

The UK and Switzerland has urged countries for more cooperation in order to ensure cross border remittance continues uninterrupted amid the Covid-19 crisis.

The two countries also urged greater access to digital remittance services.

At the same time, they have appealed to declare remittances an essential financial service.

The countries are also encouraging remittance service providers to lower payments fees.

Remittances constitute over 5% of GDP for at least 60 developing countries.

However, the pandemic is creating a hindrance to money transfers.

As per World Bank estimates, remittances to low and middle income countries are expected to slump by 20% in 2020, totalling $110bn.

International Development Secretary Anne-Marie Trevelyan said: “The coronavirus pandemic means we are all concerned about how our family and friends here and overseas are coping. That’s why we’re making it easier for diaspora communities in the UK and other countries to continue to transfer money to their relatives.

“This will be lifesaving for some families in developing countries where coronavirus is making a lack of food and healthcare, and extreme poverty, even worse. We are helping to prevent fragile economies from facing potential collapse during the pandemic.”

The call has been backed by the World Bank, the UN Capital Development Fund, UN Development Programme and the International Organisation for Migration.

Several countries including Ecuador, Egypt, El Salvador, Jamaica, Mexico, Nigeria and Pakistan have already backed the collaboration.

 

 

 

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