According to the Central Reserve Bank, remittance transactions in the second month of 2023 were 6.5% higher than the same period last year. Additionally, the average remittance was $316.9.
In the first two months of this year, Salvadoran families received $1.1884 billion in remittances, according to the Central Reserve Bank (BCR) database.
This total represents a 6.5% increase compared to the same period in 2022 when the total accumulated to $1.12538 billion.
Furthermore, remittance reception in February 2023 alone was $600.4 million, which is $12.4 million more than in January when families received $588 million.
The state bank reported that of the $1.1884 billion received this year, $1.1222 billion came from the United States, with the rest of the assets coming from Canada, Spain, Italy, and the United Kingdom.
Meanwhile, San Salvador was the department that received the highest amount of remittances, with 21% of the total, followed by San Miguel with 11.6% of the money received, Santa Ana with 8%, and La Union with 7.3%.
The BCR reported that the average monthly remittance received during the first two months of this year was $316.9.
Furthermore, the main channel used to send remittances to El Salvador in the past two months was remittance companies, accounting for 60.8% of transactions, followed by banks with 36.2%. Other alternatives used were cash or pocket, phone recharges, and digital wallets.
According to the BCR, remittances are an important indicator of the national economy as they provide economic support to around 31% of Salvadoran households and constitute a flow for the stability of El Salvador. On average, they represent 25% of the country’s Gross Domestic Product (GDP).
In the country, the reception of remittances has shown a frank growth from 2014 to date, despite the complicated international economy since 2020 due to COVID-19 and the war in Ukraine.