Contrary to what was feared due to the effects of the epidemic at the global level, remittances sent by Ecuadorian migrants recorded an increase at the end of 2020.
Remittances amounted to $ 3337.79 million last year. An item representing an increase of 3.19% compared to the $ 3.234.65 million that entered the country in 2019. This value is no less important than what was produced from bananas, the second non-oil export product, which reached $ 3669 million in 2020.
This number represents A. A new record in the transfers statistics recorded by the Central Bank of EcuadorSince the highest influx occurred in 2007, at $ 3,335.38 million.
Remittances from the United States and Italy contributed to this increase, despite the crisis. Immigrants living in the United States sent their families $ 2,026.60 million (60.72% of the total amount), an increase of 7.15% compared to 2019. While remittances from Italy, which accounted for nearly 5% of remittances, grew by 3.78%.
Louis Pasteur, Director of Advance Consultora, The one who analyzed the remittances indicated that the economic aid package provided by the United States government in the midst of the emerging coronavirus crisis was essential for Ecuadorians to be able to send resources to their families in Ecuador.
“In North America, they gave cash and that money was received by many immigrants who were sent to Ecuador. Moreover, in the second half of 2020, there was a slight revitalization of the economy in the European Union,” says Pasteur.
The consultant asserts that, given the economic situation that has arisen in Ecuador, where thousands have lost their jobs due to the epidemic, it has been observed that many immigrants have exerted “great and strong exhaustion” to send resources.
|Migrants send remittances||Millions of dollars|
|Source: European Central Bank|
Spain was one of the destinations that saw a slight decrease in the number of coursesThe second country to feed remittances (23.08% of the total). This country earned $ 770.24 million, down 3.69% compared to $ 799.73 million in 2019.
Vladimir Pasquale, President of the Rumiñahui Society and Researcher on Immigration, He argues that the decline in remittances from Spain was slight and not surprising due to the presence of Ecuadorian migrants who have continued to work amid the pandemic in priority sectors.
“Immigrants have had a vital role in the midst of the epidemic, and many of them continue to work in the field, while others have been detained. Same thing, delivery workers, transportation, shops, cleaning sector, domestic service …”, confirms Pascale.
He confirms that all these people kept sending money, and there were even those who relied on their savings to send money transfers due to the complex situation in Ecuador.
Paskell notes that the immigrants who felt the impact on their income were those who worked in the construction and hospitality sectors. In Spain, companies can send their workers to Pará by making use of the ERTE number. With this mechanism, the worker is not fired, but can receive a portion of his income.
Regulated Ecuadorians in Spain could benefit from ERTE and it is possible that part of these resources came to Ecuador.
Which governorates receive the most remittances?
Guayas, Azway, Pichincha and Kanar accounted for 74.74% of total remittances in the past year.
Remittances totaling $ 2,494.79 million were sent to those provinces, according to data from the Central Bank of Ecuador.
On the other shore are Sucumbios, Nabu, Carchi, Orielana, Bolivar and the Galapagos, which are the provinces that received the least remittances. Together they account for only 0.92%.
The bank continues to handle the largest settlement volume and drive the remittance flow. Under the method of accreditation for accounts and cash payments through auxiliary financial services companies, it acquired 50.53%.
While remittance companies made cash payments and approved accounts through the correspondent financial system, a rate of 47.57%. Savings and credit cooperatives and mutual associations certified for savings accounts did so at a rate of 1.90%. (I)
During 2020, transfers are 11’567,144, 1.66% compared to 11’378,307 in 2019.