Between January and March of this year, the sending of remittances from abroad to Peru reached US$1,193 million, according to the Central Reserve Bank of Peru (BCRP).
Compared to the first quarter of 2023, there is an increase of US$198 million and US$296 if we compare it with 2022. To date, remittances are equivalent to 1.8% of GDP, slightly higher than previous quarters.
“Remittances are a lifeline for many people in Peru and are vitally important for the prosperity of many of our local communities”complements Breno Andrade, Money Movement leader for Visa Latin America and the Caribbean.
What explains the increase in shipments? remittances? The recovery of employment in the United States, which remains the main country of origin —adds the issuing entity—. It is worth noting that, at the end of last year, the total remittances issued to Peru rose to US$4,446 million: 19.9% more than 2022.
Along these lines, in its latest Inflation Report, the BCRP estimates that this year the flow of remittances will rise to US$4. 74 8 million—attesting an annual variation of 7.0% and by 2025, reaching US$4,891 million (+3.0%)—.
Digital remittances: the door to shortening distances
The pandemic paved the way for the digitalization of transactions, and the remittance flows has not been foreign. According to Visa, 61% of users use a virtual app to send money and 56% to receive it; compared to 39% that use physical channels. Checks and money orders are far behind (2%).
The study ‘Money Travels: adoption of digital remittances in 2024’ reveals that around three quarters of Peruvians send and receive remittances at least once a year, and here the digital space is taking on a more relevant role, which allows “receiving or Send the money in less than a day.”
Likewise, 52% of users have acknowledged that they have not had any problems when receiving remittances and 39% when sending them.
What are they used for?
The report states that 27% send remittances to meet an unexpected need of their family member, 23% do it regularly and 17% for special occasions; Meanwhile, the recipients assure that in 23% of the cases it is for an emergency, 21% for vacations and 19% regularly.
“Almost half (47%) of Peruvian senders have sent S/750 or more in 2023 (…) and 50% of users plan to send more or the same amount of money,” says the Visa study.
“These play a crucial role in the country’s economy, and allow people and professionals not only to cover immediate needs, but also to invest in their future and improve their quality of life,” noted María José Artacho, country manager of Global66.
Artacho adds that The most frequent uses are investments, studies, savings and family maintenance. In this last section, there is coverage for food, clothing, housing and financial responsibilities in the country of origin.
On the other hand, it should be added that, in the first quarter of this year, Peru registered an increase of 126% in sending money to international destinations: going from US$9.5 million to US$21.5 million, according to data collected by Global66.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
