APRIL 28TH, 2020
[size=18]ON A HISTORICAL DECLINE IN MONEY TRANSFERS IN THE MIDDLE EAST ARE CLOSED
The New Morning - Agencies:
Because of the Corona pandemic and the decline in oil prices, the World Bank expects that the Middle East and North Africa region will witness the largest decline in cash transfers in recent history, and by 20 percent this year.
The bank expects, in its latest issues, that the cash transfer crisis will recover to the region during 2021, indicating that it had witnessed an improvement during the year 2019 and was 2.6 percent.
The bank said that the cost of financial transfers to the countries of this region is still the same, as the cost of transferring $ 200 is about 7 percent of it, in two cases the cost for some countries such as Lebanon exceeds 9 percent. As for the transfers between Egypt, Jordan and the countries of the Gulf Cooperation Council, the cost ranges between 3 to 5 percent of the total amount.
The reasons for the decline in expected transfers to closings are concentrated in the cities due to the Corona pandemic, not to mention the economic crisis it imposed that resulted in lower wages, lower employment rates, and job losses.
In sum, remittances between countries around the world are expected to decline to 445 billion dollars during 2020, which will increase the "poverty burden in low and middle income countries."
Remittances are an important source for developing countries, and they can help economies overcome the recession caused by the Corona pandemic, and affected by the ability of expatriates to send money to their homelands, this makes it necessary to shorten the time required to recover to high-income economies, according to David Mallbas, President of the World Bank.
Globally, remittances in Europe and Central Asia are expected to decrease by more than 27 percent, Africa 23 percent, South Asia 22 percent, Latin America and the Caribbean by more than 19 percent, and in East Asia and the Pacific regions by 13 percent.
In 2021, the World Bank hopes that remittances flows between countries will rise to 470 billion dollars, but it is still fraught with uncertainty due to the failure to reach the impact of the Corona pandemic on global growth prospects completely.