The International Day of Family Remittances (IDFR) is significant in recognizing the impact of remittances on families, communities, and nations worldwide. The day serves as a platform to highlight the economic contributions of migrants and diaspora communities who support their families, friends, and home countries through the transfer of remittances. These financial inflows play a crucial role in poverty alleviation, education, healthcare, small business growth, gender parity, and the overall economic development of rural areas, thus contributing to the realization of the Sustainable Development Goals (SDGs).

The IDFR is particularly important in the context of low- and middle-income countries (LMICs) where a large portion of the global impoverished population resides. Remittances benefit rural areas, where they can help confront food scarcity and the repercussions of climate change. By drawing attention to the significance of remittances in these regions, the IDFR serves as a reminder of the positive impact of migrant and diaspora contributions on vulnerable populations.

The International Day of Family Remittances (IDFR) is not just a day of recognition, but a crucial platform for advocating for enhanced financial inclusion and reduced remittance transfer expenses. This advocacy aligns with broader global objectives such as the Global Compact for Safe, Orderly and Regular Migration’s Objective 20. By emphasizing the need to reduce remittance costs and increase financial inclusion, the IDFR contributes to creating a more accessible and equitable financial environment, thus helping to bridge the gaps in financial services and access.

The annual commemoration of the International Day of Family Remittances also provides an opportunity to acknowledge the unwavering resilience, determination, and altruism often associated with remittances. It serves as a time to express profound gratitude and recognition for the relentless efforts of migrants and diaspora communities, highlighting their indomitable spirit in supporting their families and contributing to the economic well-being of their home countries.

In addition to acknowledging the current achievements and contributions of remittances, the IDFR also serves as a platform for discussing the challenges and areas for improvement in the remittance landscape. By recognizing the existing gaps in financial inclusion, gender disparities, and rural-urban divides, the IDFR contributes to advocating for comprehensive measures to ensure that no one is left behind in accessing digital remittances and financial services.

The International Day of Family Remittances is not just a day of celebration, but a powerful tool in raising awareness about the economic, social, and developmental impact of remittances. It advocates for improved financial inclusion and recognizes the invaluable contributions of migrants and diaspora communities to the well-being of their families and home countries. This awareness is a crucial step towards achieving the Sustainable Development Goals and fostering global development.

The transfer of digital remittances plays a crucial role in promoting financial inclusion and reducing costs, particularly in low- and middle-income countries (LMICs). It is anticipated that by 2030, migrants worldwide will have sent over US$ 5 trillion back to their home countries, benefiting rural areas where 80 percent of the global impoverished population resides, confronting food scarcity and the repercussions of climate change.

This monetary support from migrant and diaspora communities directly assists numerous families in striving towards the Sustainable Development Goals (SDGs) by aiding in poverty alleviation, education, healthcare, small business growth, gender parity, and the economic development of rural areas. The International Day of Family Remittances (IDFR) serves as a platform to emphasize the economic influence of these funds on households, communities, and nations, while also acknowledging the sacrifices, separations, and altruism often associated with remittances.

As part of the broader effort to implement the Global Compact for Safe, Orderly and Regular Migration’s Objective 20, which stresses the decrease in remittance transfer expenses and enhanced financial inclusion through remittances, the IDFR functions as a key initiative. The IDFR campaign from 2023-2024 aligns with the #FamilyRemittances Campaign 2020-2030, aiming to “Support one billion people to reach their own SDGs.”

The focal theme of the 2023-2024 #FamilyRemittances campaign, “Digital remittances towards financial inclusion and cost reduction,” spotlights the positive impact of digitalization in reducing expenses, enhancing accessibility, and promoting financial inclusion. This movement recognizes the contributions of migrants and underscores the necessity of ensuring inclusivity and access to digital remittances and financial services for all, consistent with the universal value of the SDGs of “leaving no one behind.”

On 16th June 2024, the International Day of Family Remittances celebrates the contributions of migrants worldwide to their families, friends, communities, and nations through their remittances. It acknowledges their role in helping families achieve their SDGs and commends the achievements in international and domestic remittances to facilitate affordable, secure, transparent, swift, and convenient remittance services. This comprehensive view of remittance contributions underscores the potential of the IDFR to address global challenges and promote sustainable development.

While remittance costs have significantly decreased since 2009, dropping from 9.7 to 6.2 percent of the transfer amount, digital remittance services are even more economical at approximately 4.6 percent of the transfer amount. This progress is a testament to the collective efforts towards financial inclusion and cost reduction. Additionally, global access to digital remittance and financial services has improved, contributing to enhanced financial inclusion. Though progress has been made in reducing gender gaps in account ownership, with the gap declining from 9 to 6 percentage points in developing countries, there is still work to be done to ensure that no one is left behind.

Despite the reduction in remittance costs, SDG10.c is not advancing as expected for 2030, with costs still deemed high and varying across regions. According to statistics, 1.4 billion adults globally remain unbanked and unable to access digital services, with a significant proportion being women. Gender, income, age, education, and workforce gaps still exist in every region. Furthermore, there is notably a substantial gap in rural-urban account ownership, and approximately one-third of the global population remains unconnected to the Internet. Lastly, around 760 million people worldwide lack access to electricity, and nearly 40% of adults in LMICs do not possess proper identification documents, highlighting the existing challenges in achieving comprehensive financial inclusion and accessibility to digital services. These challenges underscore the urgency and importance of our collective efforts in this area.