Charges to Philippine remittances near SDG targets — World Bank data

Charges on money sent by overseas Filipinos from 14 major remittance-sending countries teeter to meeting the 3%  target set by the 2030 Sustainable Development Goals (SDGs).

Latest data from the World Bank's quarterly Remittance Prices Database (first quarter of 2024) show that average remittance charges range from 1.8 to 4.6% if low-to-high end usual remittances are transferred.

Indicator 10.c.1 of the United Nations SDGs shows that the transaction costs for migrant remittances should reach below 3% by 2030 if migrants send US$200 or its local currency equivalent.

The other part of indicator 10.c.1 adds that the SDG target is to eliminate remittance corridor charges (i.e., from one remittance-sending country to one remittance-receiving country) of 5% and above.

The first component is that transaction costs for migrant remittances should be 3% or less by 2030. This transaction cost should be intended as “Global average total cost of sending $200 (or equivalent in local sending currency) and expressed as % of amount sent”.

This indicator is readily available and published on a quarterly basis by the World Bank in the Remittance Prices Worldwide database, which covers 365 country corridors, from 48 sending to 105 receiving countries. The second component is to eliminate corridor where cost is 5% or higher. 

These rates are significantly lower than the first-determined average remittance fees by banks and money transfer organizations (MTOs) when the World Bank first surveyed charges from 11 countries at least 16 years ago, and at least from eight years ago in three other countries.

Remittance-sending countries to the Philippines surveyed by the World Bank are Australia, Canada, Italy, Japan, Kuwait, Malaysia, New Zealand, Qatar, Saudi Arabia, Singapore, Spain, United Arab Emirates, United Kingdom and the United States.

Among the low-end average remittance amounts sent by these countries, the lowest average remittance charges was seen in Kuwait at 2.29% of the principal (65 KUW Dinar or P11,860). Kuwait is some 7,797 kms from the Philippines.

On the low-end of charges also, the most expensive remittance charges on average was seen in Japan at 5.93% when money sent