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What are remittances?

What are remittances?

The IMF and the World Bank have only recently (2005) hammered out a common definition to be used by central banks around the world. It covers two elements:

  • Worker remittances are current transfers by migrants who are resident and employed in foreign countries. A 'migrant' is someone who stays (or can be expected to stay) a year or more in a country, provided they have not been naturalised.
  • Employee compensation comprises wages and benefits earned by individuals from economies in which they are not resident. This includes wages earned by seasonal workers abroad. In Kosovo's case, it would also include salaries and other benefits paid to Kosovo Serbs by the Government of Serbia.
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