The Center for Latin American Monetary Studies (CEMLA in Spanish), a Mexico-based association of Latin American central banks; the Multilateral Investment Fund (MIF), a member of the US-based Inter-American Development Bank Group; and the World Bank recently launched Envía Centro America, a free online tool that allows users to compare the cost and speed of sending remittances from the United States to seven Latin American countries, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the Dominican Republic, as well as from Costa Rica to Nicaragua.
CEMLA remittance specialist Paloma Monroy said, “This initiative will help the Hispanic community to better understand the costs and options available before deciding how and with whom to send their money…. This tool will create more transparency in this market, contributing to reduced costs.”
According to an analysis of data from the last quarter of 2011, the average price of sending remittances started at 5.9 percent of the value of the remittance in October and dropped to 5.7 percent in December. The study also indicates that a one-percentage point reduction in the cost of sending remittances can save migrants and their families an aggregate amount of USD 150 million per year. Remittance data for the fourth quarter of 2011 also indicates that approximately USD 200 million was paid in fees to send remittances from the United States to the seven Latin American countries under consideration.
World Bank Financial Infrastructure Division Head Massimo Cirasino said, “Remittances are a vital source of income for millions of working families in Central America and the Dominican Republic. …In that sense, the sponsors of this site seek to provide useful information that will benefit those most in need.”
By Kristha Abores, Research Associate
About the Center for Latin American Monetary Studies (CEMLA):
Established in September 1952 and headquartered in Mexico, the Center for Latin American Monetary Studies (CEMLA) is an association of Latin American and Caribbean central banks seeking to promote a better understanding of monetary and financial topics in the region. It also aims to inform the public on developments in regional and global monetary and financial policy issues. CEMLA conducts research and provides seminars and training courses to central bank and other financial agency personnel. In 2012, CEMLA, together with the World Bank and the Multilateral Investment Fund of the Inter-American Development Bank (MIF – IDB), launched Envia Centro America, an online tool that allows users to compare the cost and the speed of sending remittances from the United States to seven Latin American countries, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the Dominican Republic, as well as from Costa Rica to Nicaragua.
About Multilateral Investment Fund (MIF):
Multilateral Investment Fund (MIF) is an autonomous fund that was founded in 1993 by the Inter-American Development Bank (IDB). Now a member of the IDB Group, MIF has 39 donating member countries from Latin America, the Caribbean, North America, Europe and Asia. MIF reported having approved 102 projects and committed USD 116 million for new projects in 2010.
About the World Bank Group:
The World Bank Group consists of five institutions, all of which are owned by its member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Established in 1944, the World Bank was initially comprised of two development institutions, IBRD and IDA, which provide leveraged loans to developing countries for capital programs. IBRD makes loans and grants and provides analytical and advisory services to middle-income countries and poorer countries that are deemed creditworthy, with the aim of promoting sustainable development to reduce poverty. IDA offers interest-free credits and grants to the world’s 81 poorest countries, where a majority of the people lives on less than USD 2 per day. IDA resources and technical assistance support country-led poverty reduction strategies in the following policy areas: increased productivity, better governance and accountability, an improved private investment climate and access to education and healthcare.
Sources and Additional Resources:
[1] World Bank: “CEMLA, MIF/IDB and World Bank Launch enviacentroamerica.org To Make Costs and Conditions of Remittances More Transparent”
MicroCapital.org article, May 4, 2010, “MICROFINANCE PAPER WRAP-UP: Outlook for Remittance Flows 2010-2011, by Dilip Ratha, Sanket Mohapatra, and Ani Silwal,” https://www.microcapital.org/microfinance-paper-wrap-up-outlook-for-remit…
MicroCapital.org article, April 27, 2010, “MICROCAPITAL BRIEF: World Bank Group Database of Remittance Prices Worldwide Finds Average Cost for Sending $200 is Down to 8.72 Percent,” https://www.microcapital.org/microcapital-brief-world-bank-group-database…
MicroCapital Universe Profile: Center for Latin American Monetary Studies (CEMLA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center+for+Latin+American+Monetary+Studies+%28CEMLA%29
MicroCapital Universe Profile: Multilateral Investment Fund (MIF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Multilateral+Investment+Fund+%28MIF%29
MicroCapital Universe Profile: World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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