The Basics: What are Remittances and Why are They Important?
Remittances refer to money sent by an individual to someone in another country. In Cuba, remittances make up a significant portion of the economy and are an essential source of income for many Cuban families. Remittances are mostly sent by Cubans living abroad to their families and friends in Cuba.
According to a report by the migration and remittance market analysis firm, the World Bank, remittances to Cuba reached 2.7 billion USD in 2020. This figure represents an increase of 10% from the previous year, despite the challenges posed by the pandemic.
Remittances also make up a large portion of the GDP in other countries such as Nepal, Honduras, and the Philippines. It is evident that remittances play an important role in supporting the livelihoods of many people worldwide.
The Necessity of Regular Remittances for Cuban Families
The Cuban government has historically imposed strict limitations on currency exchange, making it difficult for Cuban nationals to have access to foreign currency to buy goods and services outside the country. Remittances provide Cuban families with a stable source of foreign currency, which they can use to buy essentials such as food, medicine, and household necessities. In many cases, this income also goes towards improving their financial situation, like investing in a business, paying off debts, or saving for the future.
In Cuba, those who earn a salary from the government typically receive between 15 to 20 USD per month, which is not sufficient to support their daily needs and to invest in their future. Regular remittances from family members abroad, therefore, represent a lifeline for many Cubans.
The Impact of COVID-19 on Remittances from Overseas
COVID-19 has had considerable ripple effects worldwide, and remittances from abroad have suffered as a result. The necessary travel restrictions have made it difficult for Cuban nationals abroad to send money home regularly. The reduced availability of commercial flights and banking services, coupled with the economic downturn, has further reduced the amount of remittances flowing into the country.
Fortunately, the Cuban government has been proactive about addressing the challenges as much as possible. They have reduced the fees associated with remittance transfers and improved the exchange rate conditions. Private organizations such as PayPal and Western Union have also become more available to Cubans looking to send money home. However, the situation remains difficult during the pandemic, and remittances are not always a sure source of income.
The Future of Remittances for Cuban Families
The potential returns from remittances for Cuban families remain positive. Ongoing communication technology advancements combined with the high levels of literacy and computer literacy in Cuba ensure that people remain connected across borders. Remittance companies have increasingly sophisticated systems, which have made it easier for people to transfer funds securely and efficiently. We always aim to provide a comprehensive learning experience. Access this carefully selected external website to discover additional information about the subject. envios Cuba!
Overall, the future of remittances for Cuban families and the role they play in supporting their livelihoods remains bright, although always subject to external circumstances. The positive impact remittances have had on the Cuban economy will continue, and regular remittances from overseas will remain just as important for supporting the Cuban people in their daily lives and future aspirations.
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