All empirical evidence suggests that the US Dollar got stronger against other currencies and hence people sent more. One would believe that if the beneficiary country’s currency depreciates, the same amount of money will come in, just more in local terms. Turns out, people try to send in more money to take advantage of the […]
The government can incentivize. Use game theory to make sending remittances back home, earn more points. These are not necessarily points per se, but the more you send back, the more benefits you reap. I am always surprised, how many organizations, institutions, and the government especially forget about game theory and how it works in […]
It depends: It is either pre-funded, i.e. arrangements are made to have enough money on the other side, so that when a payment is made, the money is taken out of the available balance and paid for. The other arrangement is credit (which has a counter party risk factor higher than the pre-funded one). In both cases, […]
It doesn’t! (unless of-course you are operating a 100% cash only money transfer network – an example of which I do not know of). To understand how cash is transferred between countries, read this answer: Faisal Khan’s answer to Where do currency exchanges get their currency? To understand how money transfer works between countries, including remittances, […]
What’s the safest and securest way to transfer money from the Philippines to the US, by wire transfer, online, or through bank, etc.?
Bank transfers are usually the safest. In your reference you cited, wire-transfer, online or through bank. All these are essentially the same. The only difference is, if the service is being provided by the bank itself (like BDO, etc.) or by an non-banking financial institution (like Xoom or TransferMate, etc.).
The world’s P2P (person-to-person) remittance market is estimated to be over the US$ 600 Billion mark. You can also watch this video for a brief explanation