Remittances: An economic bridge between countries and cultures.

Remittances: An economic bridge between countries and cultures Remittances, that financial flow that crosses borders, play a vital role in the local and regional economy of Latin America. At the end of last year, our country received US$4.446 billion, 19.9% more than in 2022. This is a historic record according to the Central Reserve Bank of Peru (BCRP), impacting the national economy and boosting consumption. It is an indicator that reflects the importance of the Peruvian diaspora abroad and their commitment to the well-being of their families in the home country. But beyond the monetary amount, remittances also represent an emotional and supportive link between migrants and their loved ones in Peru. This support goes beyond purely economic aspects, as it drives the academic and professional development of many Peruvians, as evidenced by the increase in remittances related to education, with Spain as the main destination in this regard. It is a reflection of the effort and sacrifice of families to provide better opportunities for the new generations. Another notable aspect is the impact of remittances on the importation of products, particularly those from Asia. This phenomenon demonstrates the strategy of diversifying sources of goods and services, as well as the adaptability of our entrepreneurs to meet the demands of the domestic market and participate more actively in international value chains. Globalization is present in daily transactions, driving trade and economic integration. The Latin American region as a whole has witnessed sustained growth in the flow of remittances. According to the World Bank, during 2023, countries in Latin America and the Caribbean received $156.000 billion in remittances, an 8% increase compared to the previous year. This increase reflects the resilience of Latin communities abroad and their commitment to maintaining that vital connection with their home countries, thus contributing to the development and well-being of their fellow citizens. However, it is important to consider that the impact of remittances varies depending on the economic and political context of each country. In the case of Argentina, for example, a significant increase in money transfers to Peru has been observed, while with Ecuador, political uncertainty has led to an increase in remittances to our country. These movements reflect the complexity of economic and social relationships at a regional level. The phenomenon of remittances not only demonstrates the evolution of our economies towards a more collaborative environment, but also highlights the importance of technological innovation in this process. It is expected that digital platforms will continue to play a crucial role in facilitating cross-border financial transactions, promoting economic connectivity and contributing to the development of a more inclusive and accessible global economy for all. Remittances, ultimately, are much more than money; they are a bridge that connects countries, cultures, and families in an increasingly interconnected world.