Monday, 20 September 2021 13:48

BCR indicates that family remittances total US$4,901.2 million from january to august 2021

Written by Evelyn Alas

According to the Banco Central de Reserva (BCR), family remittances received in El Salvador from abroad accumulated US$4,901.2 million in the period from january to august 2021, showing a growth of 35.0% compared to the same period last year, equivalent to an additional US$1,271.2 million.

In the first eight months of the year, a total of 15.5 million operations were recorded, with a growth of 16.1%, equivalent to 2.1 million additional operations with respect to the same period of 2020.

Family remittances withdrawn over the counter between january and august totaled US$3,339.3 million, equivalent to 68.1% of the total, with a growth of 29.3%; meanwhile, family remittances credited to a bank account totaled US$1,463.1 million, equivalent to 29.9% of the total, with a growth of 44.4%.

Recharges to cell phones from abroad, which are considered as remittances in kind, totaled US$15.5 million between january and august, equivalent to 0.3% of total family remittances, with an average value of US$6.4 per recharge.

Family remittances received by our country from the United States between january and august 2021 totaled US$4,675.5 million, equivalent to 95.4% of total family remittances, with a growth of 33.7%. The four countries that follow the United States in order of importance are: Canada with US$46.3 million, Spain (US$18.7 million), Italy (US$16.5 million) and Mexico with US$5.3 million; these four countries represent 1.8% of total family remittances received.

Between january and august, 57.0% of total family remittances received were concentrated in the following five departments: San Salvador (21.0%), San Miguel (12.0%), Santa Ana (8.0%), La Libertad (8.0%) and Usulután (8.0%). At the municipal level, there was an increase in the country's 262 municipalities, with growth rates between 33.0% and 52.0% in more than half of them.

Family remittances constitute an important contribution to the income of 25.3% of salvadoran households. The continued reduction in the unemployment rate of Latinos living in the United States and the recent announcement of the renewal of the Temporary Protected Status (TPS) until december 31, 2022 for salvadoran beneficiaries and other nationalities are expected to favor stability in the sending of family remittances to El Salvador.