Why is foreign remittance important?

  • ERemit
  • 2 minutes read

With the ever-rising number of migrant workers and settlers, foreign remittance is very important in this era of globalization. Why do people migrate to other countries? Migration happens as developed countries offer better career opportunities, living conditions, education standards etc. Without a good vocation, people cannot live a decent life. Thus, they are out there in other countries, working hard to financially support their families back in their home countries.

Migrant workers transfer money online out of their love and care for friends and family. The remittance money is rather very essential for poverty alleviation of families and the whole economy of the country. Considering the situation of the families, remittances help them in various ways of:

  • Fulfilling survival needs of food, shelter and clothing.
  • Allowing children to gain quality education rather than going to work to sustain family finances.
  • Repayment of debts borrowed from the money lenders for different purposes including migration needs.
  • Affording health-related problems and treatments from private hospitals that are all the more expensive.

Apart from these direct financial assistance, remittance money also helps the country economy in diversifying ways, such as:

  • Contributing to the GDP (Gross Domestic Product) of the country.
  • Inviting FDI (Foreign Direct Investment) to the country.
  • Spicing up the financial market, liquidity of money etc.
  • Promoting entrepreneurship and small business firms.

Looking at foreign remittance from a broader perspective, it is not only important to the family members, relatives and friends, but also to the country as a whole and the global economy. Online money transfer in Australia helps migrants to send money through a web portal and mobile app at their convenient hours, thus contributing to the financial stability of family and home country.