Fiji’s total remittances received from January to December last year was the highest ever standing at $652.75 million, which is an annual increase of 11%.
International remittances refer to the transfer of money to domestic households from family and friends working or living abroad.
The Reserve Bank of Fiji says in December 2020, remittances rose by 44.9% to $75 million. That is also a record monthly high.
November 2020 also exceeded expectations, surpassing 2019’s highest monthly remittance inflow of $60.5 million.
The RBF confirmed that with restricted borders and tourism travel, remittances has displaced tourism as the major foreign exchange earner in 2020, much to the credit of Fijians working and living abroad.
In Fiji, remittances over the last ten years averaged $433.2 million, equivalent to 4.7% of GDP, with more than 60% of the funds originating from Australia, New Zealand and the United States.
In 2019, remittances sent through formal channels was $587.5 million and accounted for 5.0% of GDP. However, the RBF says given that a sizeable amount of remittances also comes through mobile money platforms and informal channels, the actual inflows could be much higher.
From February to April last year, following the intensification of the COVID-19 pandemic, the flow of remittances into Fiji fell markedly. However, inflows started to pick up as the pandemic persisted and job losses rose, prompting Fijians living abroad to increase their assistance to their families back home.
Inward remittances through the mobile money platform increased by 278.6% to $50.4 million from January to October 2020, compared to the same period in 2019.
The RBF says it continues to collaborate with mobile money service providers, money exchange dealers and commercial banks to facilitate cheaper, easier and faster transfer of international remittances to Fiji.
