Remittances recorded the largest foreign exchange earners in 2020 and this trend would likely to continue in 2021.
This was according to the deputy governor of the Reserve Bank of Fiji, Esala Masitabua, during a workshop where the UK Foreign Commonwealth and Development Office and GSMA (the mobile phone operators association) convened experts from across the region, the UK and France to explore how mobile phone technology could help to maximise access to and reduce costs of remittances in the Pacific.
“During 2020 remittances rose to occupy first place as Fiji’s largest foreign exchange earner with a value of $US356.9 million ($F734.9m),” he said.
Mr Masitabua also highlighted the rapid growth in mobile remittances during the Covid crisis.
“The total value of personal remittances through mobile money in Fiji recorded an unprecedented and remarkable annual increase of 338.9 per cent to $US39.6m ($F81.4m) in 2020.
This value accounted for over 218,000 unique transactions during the year; or an average of $US140 ($F289.2) per transaction.”
According to a statement from the British High Commission in Suva aside from providing macro-economic stability, remittances were vital to maintaining household incomes and livelihoods.
The Pacific Development director at the British High Commission Jean-Paul Penrose said remittances had proved invaluable during the Covid-19 crisis.
“They directly benefit households and livelihoods in ways which other financial support struggles to achieve,” he said.
“Remittances sent by mobile phone can help deliver vital funds rapidly and cheaply to vulnerable households at times when they are most needed.”
The workshop also heard mobile money transfers were often significantly cheaper than more traditional remittances routes.
GSMA Mobiles for Development director Max Cuvellier said the average price of sending $US200 ($F404) remittances via mobile money remained the cheapest at 3.53 per cent.
“Mobile money has great potential to strengthen the Pacific remittance sector,” he said.
However uptake was still not as high in the Pacific as in other regions in the world, despite the lower cost of mobile money remittances.
