EC$200 million in remittances through money services couriers in 2020

by Linda Straker

• 2 companies licenced to conduct money transfer activities in Grenada
• Minister Gregory will be tabling the report on 1 February 2022 sitting of the House of Representatives
• Grenada and many other countries are highly dependent on remittances

The global Covid-19 pandemic did not negatively affect the flow of remittances into Grenada because when compared to the amount received in 2019 to 2020 there was an increase of EC$47 million.

“Based on data reported to GARFIN, total remittances flowing into Grenada in 2020 through the money transfer operators amounted to EC$200 million while total outflows amounted to EC$47 million,” states the 2020 annual report of the Grenada Authority for the Regulation of Financial Institutions (GARFIN).

As of 31 December 2020, there were 2 companies licenced to conduct money transfer activities in Grenada.

Leader of Government Business and Finance Minister Gregory will be tabling the report on 1 February 2022 sitting of the House of Representatives.

Grenadians received EC$151.9 million in remittances through these 2 money transfer services for the year. In 2018 the amount received was US$149.72million and in 2017 the amount was US$141.07 million.

In November 2021, the World Bank in a report said that Global remittances to low- and middle-income countries in 2021 were projected to increase by 7.3% – marking a stronger-than-expected growth.

The 2021 figure is estimated to reach $589 billion, compared with $549 billion in 2020. For 2022, remittances are again expected to grow, but at 2.6% over 2021. The cash flows in 2021 were aided by the sharp economic recovery in the United States and Europe, as well as higher oil prices benefiting regions such as the Gulf.

Grenada and many other countries are highly dependent on remittances and for governments in low-income countries, the cash flows from abroad were a cushion during the pandemic.

The World Bank report said that remittance flows into Latin America and the Caribbean were expected to reach a new high of $126 billion in 2021, registering a solid advance of 21.6%compared to 2020.  The remittances reported by GARFIN is not reflective of remittances that were done directly with commercial banks and or credit unions for the year 2020.

In May 2021 Deon Moses, Chief Operating Officer at the Grenada Cooperative Bank confirmed that there was an increase in wire transfer from the Diaspora to the Bank for the period October 2020 to March 2021. “We have seen increases from the Diaspora for the last 6 months,” Moses replied when asked if the remittances through wire transfer contributed to the Bank’s profitable operations for the period October 2020 to March 2021.

The Bank’s online service experienced a significant increase after Grenada declared a state of emergency in March of 2020 and a curfew was enforced causing a restriction on the movement of citizens because of the Covid-19 pandemic.