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Hong Kong tightened controls over remittance agents and money changers last January.
We test across these treatments whether control over remittance spending in the form of grocery vouchers affects remittance behavior.
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Current commission fees for money remittances are estimated to be 15% per transaction, increasing to over 25% for remittances below $100.
Although Western Union has hotly denied the reports, in recent years sending cash between countries has become big business: each year people send over $400 billion in remittances to developing countries.
In terms of ethnicity, mestizos and whites are over-represented among remittance recipients whereas individuals who identify as Afro-descendants, Montubios, or Indigenous are under-represented.
Argentina's oil production has declined in the last decade as regulatory uncertainty persisted over price caps and the policies over profit remittances.
Remitly is currently the fastest-growing of the remittance players — over 400percentt in the first quarter of 2016 — but it's seeing a much smaller volume of transactions, which has had a knock-on effect on valuation, funding, and subsequent growth.
"The fuss the authorities are making over the remittances means that they are recognizing that we don't have other [growing] sources of foreign currency," he told VICE News.
Sendah has a number of benefits over plain cash remittance.
Over the years, remittance has emerged as an important source of external development finance (Hasan 2006).
The World Bank estimates that over $450 billion in remittance payments into developing countries will occur in 2015, which is three times larger than the amount of total direct foreign aid that will be sent to those countries.
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