Remittances are a mainstay for 24% of Salvadoran households, driving personal consumption. /DEM
According to the Central Reserve Bank (BCR), family remittances, a major source of foreign exchange and one of the drivers of private consumption, continued its growth trend last April, reaching 2.5783 billion in the first four months of this year. accumulated dollars.
Outstanding remittances as of April increased by $104.8 million from $2.4735 billion in remittances received in the same period in 2022, representing a 4.2% year-on-year increase.
$665.6 million was received in April alone. The number of surgeries also increased by 4.1% year-on-year to over 7.8 million. This means that Salvadorans abroad are sending more money and on more occasions than they did a year ago.
Remittances are one of the main pillars of the economy as most of their income is used to support households. A BCR and International Organization for Migration (OIM) study released in 2022 found that four out of five Salvadorans living in the United States send money to help their loved ones.
The United States is the dominant issuer of family remittances, home to more than 1.4 million Salvadorans who were born in the country and emigrated at the age of 18. 93.2% of reported revenue in the first quarter came from the country, up 4.2%.
Canada was the second issuing country, with a participation rate of 0.9%, and remittances from this country increased by 6.5%.
Remittances from Spain grew the fastest at 43.7%, followed by Italy at 55.6% and the UK at 15.8%.
Average household remittances in April were $318.8, according to a central bank report. Chalatenango is still at the top of the rankings with a price of $410.9. This is even higher than the minimum wage in the commercial and service sector ($365).
San Salvador is the province that attracts the most resources, but has the lowest average, $287 per month.
In order of importance, households in San Salvador received 10.5% of remittances, San Miguel at 6.2% and Santa Ana at 3.5%.
The agency reported that remittances to cryptocurrency wallets dropped 18.9% as of April, reaching a cumulative total of $32 million, but only 1.2% of total receipts.