Money flows fell from US$601.96 million to US$550.71 million.
Amid the crisis caused by the shortage of dollars in the country, the flow of family remittances to the country continues to decline and, as of May, has already reached 8.5%. The reason: money transfers from Chile and the United States have suffered a drop of 32% and 8.1%, respectively.
Remittances, which come mainly from Bolivian migrants residing in Spain, Chile, the United States (US), Brazil and Argentina, represent —along with exports, tourism, foreign investment and external loans— a source of foreign currency for the country.
Since February 2023, Bolivia has been facing a problem of lack of liquidity and shortage of dollars that has not been able to be resolved. Added to this is the suspension of a dozen credits in the Legislative Assembly for more than US$ 1,000 million that could alleviate the pressure due to the lack of foreign currency.
According to data published by the Central Bank of Bolivia (BCB) on its website (www.bcb.gob.bo), between January and May of this year, remittances reached US$ 550.71 million, 8.5% less than the US$ 601.96 million recorded in the same period in 2023.
The amount is even lower than those recorded in the last three years. Between January and May 2021, family remittances reached US$ 568.26 million, a year later they increased to US$ 611.11 million and in 2023 they fell slightly to US$ 601.96 million.
CHILE AND USA
For its reports, the BCB collects information from the national financial system, electronic money transfer companies and other sources.
The drop in family remittances is mainly explained by lower remittances from Chile, the United States and Brazil, except for Spain and Argentina, where there was an increase in money flows to the country.
But why did lower remittances from Chile and the United States influence the drop in remittances until May of this year?
After Spain, remittances from these countries represent just over 40% of the total cash flows received by Bolivian migrant families. In short, nearly 75% of the remittances received by Bolivia come from Spain, Chile and the United States.
According to BCB data, funds from Chile have fallen by 32% until May of this year compared to the same period in 2023, from US$ 147.72 million to US$ 100.40 million. As for the United States, the decline has been 8.1%, from US$ 119.93 million to US$ 110.22 million. On the other hand, funds originating in Spain and Argentina have risen by 4.7% and 10.1%, respectively.
DATA
According to the latest report from the National Institute of Statistics (INE) of Chile, published on its website on December 29, 2023, the Bolivian population grew, between 2018 and 2022, by 35.1%, from 109,576 to 148,059 people.
Along with this growth in the Bolivian migrant population, the number of remittances sent to the country has also progressively increased.
On May 27, BCB President Edwin Rojas said that the drop in remittances in the first quarter of the year was due to exogenous factors that affected economic activities in Chile and the United States.
“Remittances from Chile and the United States have fallen, mainly, and the rest of the country remains at the same levels as those at which remittances normally arrive in the country. (…) The explanation is basically due to these exogenous factors that Bolivian migrants who send remittances to the country experience.”
He explained that, in the case of Chile, despite the fact that there is a favourable economy, sectorally, some areas such as construction and mining, linked to copper, in which Bolivian migrants participate, have decreased.
Regarding the reduction in remittances from the United States, Rojas indicated that compatriots who work mainly in service activities "would also have experienced a decrease in economic activity in the northern country, therefore, there would also be a decrease in remittances sent to the country."
According to the latest data published by the United Nations (UN), 927,244 Bolivians were registered in different countries around the world in 2020. This number represents the legal registry, but there is another unregistered number living irregularly in the host countries.
Thus, the main countries of residence of Bolivians are Argentina, with 423,136 people; Spain, with 159,936; Chile, with 128,782; the United States, with 80,028; Brazil, with 49,289; Peru 28,165; and Italy 15,580. (This represents 92.4% of residents abroad).
