Understanding Money Transfers and Remittances | Generated by AI
Definition of Remittance
A remittance is the transfer of money from one person or entity to another, often across borders. It commonly refers to funds sent by migrant workers or expatriates to support family members in their home country, but can also describe any payment sent for goods, services, or obligations.
Key Contexts
- Personal/International: Money sent by individuals abroad to relatives, like a worker in the US wiring cash to family in Mexico.
- Business/Commercial: Payments for invoices or debts, such as a company remitting funds to a supplier.
- Economic Impact: Remittances are a major source of income for many developing countries, often exceeding foreign aid.
Merriam-Webster Dictionary
Wikipedia: Remittance
Investopedia: Remittance