The BCR projects $7.5 billion in remittances by the end of 2022

The president of the Central Reserve Bank (BCR), Douglas Rodríguez, reported that despite the inflation that is experienced worldwide, Salvadorans abroad, mainly those who live in the United States, have not stopped sending remittances to their relatives in El Salvador.

“From January to October of this year, more than $6.3 billion in remittances accumulated, with a growth rate of 3.7% compared to the same period in 2021. However, it is projected to close the year with $7.5 billion in remittances, with a growth of 3.7%,” said the head of the BCR.

He added that, beyond the data, remittances represent the hard work and commitment of all compatriots who, from another country, work tirelessly to prioritize their families.

“Family remittances are also a gateway for financial inclusion for Salvadorans anywhere in the world,” he reaffirmed.

According to the institution’s data, about 2.5 million Salvadorans live abroad. They migrated due to poor public security and the lack of economic conditions and opportunities that previous governments did not offer them. In the United States alone, there are 1.4 million.

The official also said that remittances are a very important economic support for around 31% of Salvadoran households, constitute a flow for the stability of El Salvador, and that on average, they represent 25% of the country’s Gross Domestic Product (GDP).

Remittances from the United States

The Survey of the Salvadoran Population in the United States, carried out by the BCR and the International Organization for Migration (IOM), presented this week, revealed that 79.7% of compatriots of legal age in the United States—which is equivalent to 1.1 million people living in the North American country—send remittances periodically to support their relatives. Of the money sent, 94.7% is destined for consumption. It is followed by the payment of basic services such as water, electricity, cable, and internet with 83%; and medical expenses with 59.9%.

On the other hand, the results indicate that 63.6% of family remittances sent to the country are made monthly, with a value of $330.3. While the second most common frequency is biweekly at $19.1, which has an average cost of $269 for each shipment,

Likewise, the research indicates that, among the means of sending, 78.3% use international remittance companies such as Moneygram, Ria, and Transnetwork. In addition, 15.8% do so through account-to-account financial intermediation, and 9.5% use digital channels such as Remitly, Paypal Cash, Google Pay, and Wise.