Remittances are perceived as one of the key benefits that migration bring to originating countries.
According to the United Nations Conference on Trade and Development (UNCTAD), remittances are private flows of resources mostly intended for direct consumption and household support.
In fact, a report by UNCTAD titled: “Maximising the Development Impact of Remittances,” stated that there is solid evidence that remittances can and have assisted many developing countries and least developed countries (LDCs) in maintaining balance of payment (BOP) stability, ensuring the availability of hard currency, improving countries’ credit worthiness for external borrowing and increasing internal aggregated demand.
Also, it pointed out that during crisis, remittances have proven to be more reliable and sustained flows than other sources of external financing such as foreign direct investment, public debt or official development assistance.