Remittances drop 4.7% in Q3 due to woes in rich countries

- Thursday, November 24, 2011

Remittances drop 4.7% in Q3 due to woes in rich countries

Remittances to Ecuador fell 4.7% to US$597mn in 3Q11 compared to the previous quarter, according to a press release from the central bank BCE.

The figue represents a 2.4% drop on the same quarter in 2010 and likely reflects the economic situation in the countries where most Ecuadorian migrants work, namely the US, Spain and Italy, BCB said.

The central bank also said that the presence of savings cooperatives was evident in 3Q11, receiving 2.8% of the quarter's remittances. At the end of October 2011 there were 122 savings and credit cooperatives regulated by the social and economic inclusion ministry MIES.

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The statement comes after an agreement in October 2010 allowed Ecuadorians to recieve remittances in cooperatives regulated by MIES using the BCE national payment system. A total of 85 of the regulated cooperatives are now operating under this system.