Australia to help cut migrant remittance costs

Oct 26, 2011 |

Tags:

remittance

Australia on Wednesday announced plans to make it cheaper for migrants from Commonwealth countries working overseas to send money back home.

In some Pacific nations, like Tonga and Samoa, remittance flows account for more than 20 per cent of gross domestic product, but for many migrants an average nine per cent of all cash sent back goes on banking or mailing costs.

Australian Foreign Minister Kevin Rudd said Canberra will spend A$3.5 million ($3.6 million) over two years to help cut the cost by helping countries to lift competition in the remittance services market.

"Every year migrants from developing countries working overseas give more money back to their home countries than developed countries give in aid," he told a Pacific island foreign ministers breakfast in Perth.

"Our support will change lives. It will mean more dollars make it home to pay for school fees, health care and to put food on the table."

Remittance flows to developing countries are expected to reach $350 billion globally by the end of this year.

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