As remittance now plays a vital role in the war-torn economy of Ukraine, global financial leaders commit to lowering the fees
Financial institutions pledge to lower remittance fees to Ukraine. Source: depositphotos.com
Leading financial institutions including Mastercard, Visa, Wise, and TransferGo along with the European Commission have signed a joint statement pledging to lower remittance fees to Ukraine until the war is over.
The pledge acknowledges the important role remittances play in the Ukrainian economy. Before the war started, remittance flows constituted roughly 7% of the country’s GDP. Today, as millions of people have been forced to leave Ukraine, the World Bank projects that remittances to the war-torn country will increase by 22% in 2022.
The institutions which signed the commitment have pledged to ensure that remittance fees decrease, with the established target of 3%. They will also voluntarily and bilaterally lower total fees, disclosing foreign exchange markups. Finally, the remittance providers seek to maintain the accessibility of remittance services in Ukraine despite possible war-related obstacles.
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