Letty Guitierriez, who works at the Central Bank and holds a Master’s degree from Columbia University in New York, did intensive studies in remittances across the region.
"Our culture is very specific," she says. "Every Dominican who lives abroad is expected to send home remittances. Most Dominicans, in the States (U.S.) at least, are intending to return here for their retirement. They send home money to help their families and their communities. I even had some of them in New York who asked me if I wanted them to send money to me when I returned."
She explains that the remittance delivery system in the Dominican Republic is very advanced. The money, in pesos or dollars, is delivered right to the home, all across the country. Many of the companies are not even charging now for transmission, making their money on the foreign exchange rate.
"This," according to Guitierriez, "makes it difficult for the banks to get this money into regular accounts, where perhaps the receivers might access other bank services such as credit for business. Remittance money is seen as something separate, as money that a person can keep and spend just as she wants."
While the rate of remittances has dropped over the last year, the Central Bank figures still show a steady rise over the years. From 1999 to 2008 the total value of remittances doubled from 1.5 billion to 3.1 billion dollars a year. Remittances account for more than 10 percent of the GDP.
Will there be a decline because of the U.S. crisis? "Families will be hard hit as this money is used primarily for daily living expenses, for rent, school, food, not luxuries," she replies. "But there is also a concern since remittances are the second largest source of dollars for the Dominican Republic, after tourism. That is money that we use to pay our foreign debt."
http://www.ipsnews.net/2009/06/dominican-republic-remittance-crunch-but-women-migrants-keep-sending/