Moroccan Diaspora Remittances Surge to $6.8 Billion, Boosting National Economy

Whether regular or occasional, money transfers from MREs to Morocco play a major role in the lives of households in the kingdom, revealed a study conducted by Bank Al-Maghrib and the World Bank, specifying that, per year, the MREs have transferred more than 60 billion dirhams to Morocco. A sum that makes MRE remittances one of the main sources of foreign exchange for Morocco.

Thus, in 2020 and despite the health crisis, MRE remittances increased by 5% compared to 2019, i.e. 68 billion dirhams in 2020, compared to 64.7 billion in 2019. Named Green Back Morocco, the study by Bank Al-Maghrib and the World Bank focused on some aspects of this financial windfall and took into account several localities and a large number of beneficiaries.

Most of the time, the transfers are made by relatives living abroad, particularly in France or Spain, the respondents said. These transfers are perceived by half of the beneficiaries in the form of regular monthly payments, and monthly by women whose husbands are abroad or the elderly cared for by their children living outside. There are also occasional transfers made only during religious holidays, school returns, summer vacations or medical expenses or other emergencies and unforeseen events.

In addition, most of the time, the funds are sent through the services of money transfer operators, i.e. 97% of senders, compared to 12% who use bank transfers, the study said. As for informal intermediaries, they are almost unusable since the arrival of specialized operators. For the withdrawal of funds, payment institutions are the most exploited, because they are considered accessible to everyone, several respondents said. In this area, banks are less prioritized, the study revealed. For international transfer fees, at the level of money transfer operators, the transfer fees are automatically paid by the sender. This makes withdrawal easier for beneficiaries, the study stressed.