What can countries with high transaction cost on remittance do? Adopt an Indian method

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Needless to say, just as capital flows aid in import coverage for countries with persistent current account deficits, the same also holds true for remittances. A further breakdown of these flows by regions shows that in 2023, remittance inflows grew by 8 per cent for Latin America and the Caribbean, by 7.2 per cent for South Asia, by 3 per cent for East Asia and the Pacific, and by 1.9 per cent for Sub-Saharan Africa. Such flows are less volatile and therefore instrumental in building buffers against large external shocks. This is particularly true at times of heightened uncertainty as...