Migrants’ remittances, one of the largest and reliable sources of external funds for developing countries, have been soaring in recent years. Although they are second only to foreign direct investment (FDI) inflows with respect to scale, remittances amount to over three times the value of official development aid and eight times private capital. These flows have surged five-fold in the past 15 years. This upsurge as well as the potential for remittances to lower poverty and economic vulnerability, improve family welfare, and accelerate economic development has renewed academic and public policy interest on the issue.

In development literature, foreign direct investment (FDI) is regarded as being instrumental for the economic growth of all countries, particularly the developing ones.

Remittance is a significant contributor to the economy but its instability makes it unviable to fuel sustained growth

More time needed to assess the efficacy of interest rate corridor framework to reduce volatility in interest rates and managing liquidity