LATIN AMERICA ADVISOR

Financial AMERICA ADVISOR

A daily publication Of the dialogue

February 22, 2022

Is Central America Relying Too Much on Remittances?

Guatemala received a record level of remittances from people who have moved abroad. Migrants in Mexico are pictured. // File Photo: Guatemalan Government

Q

A

Mark Lopes, chief operating officer of the Partnership for Central America: “For many in Central America, remittances are a large share of their income. In the short term, this can provide a vital lifeline for families struggling to make ends meet. Longer term, however, it is an unreliable source of economic security. As global economies transition to a recovery cycle and remittance flows fall, this risk will become increasingly present. While we work to ensure short-term economic security for families in Central America and elsewhere, we must also solve the root causes that underlie the need for remittances by building sustainable economic opportunities. Working with companies like Mastercard and Microsoft, the Partnership for Central America aspires to do just that—the digital and financial structures to support new opportunities while attracting new investments that translate into jobs…”

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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

Richard Child
CEO,
Mattrix Group

Michael Diaz
Partner,
Diaz, Reus & Targ, LLP

Ernesto Fernández Holmann
Chairman of the Board,
Ayucus

Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial

Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

Thomas Morante
Attorney,
Carlton Fields

Manuel Orozco
Senior Fellow,
Inter-American Dialogue

Adalberto Palma Gómez
Senior Partner,
Aperture SC

Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law

Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI

Mario Trujillo
CEO,
DolEx Dollar Express

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