The term remittance refers to a set of funds that people who migrate from their country of origin send to it, usually it is destined for their relatives. Since the 19th century, the sending of money from emigrants has been a common fact, especially with the migratory boom that occurred in that century, but it was not until the end of the 20th century that it reached higher figures, motivated by the implementation of new technologies in communication as well as in the banking sector.
Remittances can be income when they refer to that money that is collected, that is, an authorization is issued by the user for the bank to proceed to carry out said collection, when that happens automatically, the user's bank balance increases. that the amount to whom it was charged is canceled. On the other hand, remittances of expenses or payments refer to those that proceed when the bank receives approval from the client to pay a charge, then the reverse effect occurs, the client's balance decreases and that of the provider increases..
After the precedent of the industrial revolution, remittances had a boom, especially thanks to the phenomenon of globalization and the massive displacement of people to places other than their origin. In general, people who move to other countries do so in search of new and better economic possibilities and therefore undertake this adventure alone, so that the money they obtain can be sent to their families, who remain in their native country.
According to experts such transactions are in the number two in reference to movements of money to level worldwide, followed by humanitarian aid made in situations of urgency. This means that remittances help capital to keep moving, being one of the main reasons that money moves by sea. The figures of the remittances that a state may have, will depend to a great extent on the economic, social and political situation of the same.
