Remittance is a way to send money from one country to another country. It is considered to be one of the most visible forms of economic contribution by the immigrants to their home country. This also plays a major part in the life of the students who are studying abroad.
When we send money from our home nation to another foreign nation, it is known as an outward remittance. While receiving money from a foreign nation, it is said to be inward remittance. Modern days, Remittance has become a major service for all money changers and all the banks that offer foreign exchange. Due to its promising growth, money changers have moved a step ahead and introduced the same in their online portals and their mobile applications as well.
Before Covid, the usage of remittance between countries has increased in a significant amount in all the mediums i.e. both in digital and in offline stores. This created a huge job opportunity in this sector as well. Before the pandemic, World Bank has forecasted the remittance for 2019 as $707 billion. The forecast for 2021 during that time is $768 billion. After the Covid, the world bank has reduced the estimate to $619 billion. A drastic change with a difference of $149 billion explains the damage a lot.
Many mid and low-range countries considered remittance as one of the major aspects of their GDP. Especially countries which depend majorly on tourism have contributed more to its GDP from this. The countries such as Nepal, the Philippines, Sri Lanka, and India are few among them.
After the pandemic, the restrictions in international travel and continuous closure of Foreign Exchanges and banks because of the lockdown have affected the remittance business a lot. Thankfully with the help of the digital space i.e. through their web service and mobile applications, they can able to increase the remittance profit a bit more than usual. By understanding the current situation, many money changers have started to show themselves in the digital market.
In other words, post-pandemic, the digital remittance business of all the money changers increased in a quite reasonable percentage. But the offline sales have affected badly. Since stores provide the major contribution to the remittance, the overall remittance business is on the downside.