To mark the International Day of Family Remittances today, Wise has published its Annual Remittances Report, to show how G20 countries, including the UK, can reduce the cost of remittances. 

In 2015, the UN set out Sustainable Development Goals (SDGs) to bring the cost of remittances down to 3% by 2030. However, World Bank data shows that progress towards this has flatlined, with remittance costs even increasing in some countries. It's estimated that European lose $5billion in fees hidden in exchange rate markups a year.

In the UK, remittance volumes have been increasing, despite tricky economic conditions. This isn’t necessarily a positive development - the UK slashed its overseas development aid budget in both 2021 and 2022, and it's possible that the increase in remittances is helping to cover this shortfall. 

As inflation and cost of living crises continue, bringing down the cost of remittances should be a priority. These often represent a crucial income stream, and go towards essentials like healthcare and education. 

Transparency is key in bringing down costs, and significant policy efforts are needed to enforce this. There is a strong opportunity to do this, with the current review of the Payment Services Regulations (PSRs). This will help push transparency and could introduce binding rules to require firms to show up-front the total costs of currency conversion services. 

The full report can be found here. Would this be of interest?