Concept harmonization and data exchange

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• Concept harmonization and data exchange
• in the Middle East
• Remittances in the Arab countries

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Remittances Seminar

• First remittances seminar was held in Beirut in
  March 2009
• Participant countries were Egypt, Iraq, Jordan,
  Kuwait, Lebanon, Libya, Palestine, Qatar, Saudi
  Arabia, Syria, and Yemen.

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Joint project METAC BDL

• The Middle East Technical Assistance Center
  (METAC)
• Center opened in Beirut (in October 2004)
• Collaborative effort between the International
  Monetary Fund (IMF) and several bilateral and
  multilateral donors. It provides technical
  assistance and training to Afghanistan, Egypt,
  Iraq, Jordan, Lebanon, Libya, Palestine, Sudan,
  Syria, and Yemen.
• Banque du Liban External Sector Section _at_
  Department of Statistics and Economic Research
  (ESS)
• Sample format based on CEMLA experience was
  presented, as an example of a regional
  organization unifying the collection of data.
• Compilation of all the participant countries'
  metadata by ESS-Lebanon

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Objectives

• To understand the current situation
  of personal remittance
• transactions in the
  different countries
• To know the differences and/or similarities in
  compilation and methodologies between the
  different countries
• To agree on the best way forward in improving
  the methodology among the different involved
  countries
• To establish a database to exchange data on
  remittances

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Understanding the current situation of countries

• Identifying possible remitting channels
• Recognizing the predominant remitting channel
  used in the country
• Effectiveness to capture data depends
• on the major remitting channels (formal/informal
  and this consideration depends on the country as
  what is formal in a country may be considered
  informal in another given the regulatory
  treatment)
• whether the country is the remitting country or
  the recipient country, or both.

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Evaluation of current data collection system

• Compatibility with BOP concepts ( personal
  transfers, residency /nationalities)
• Comparing the major remitting channels
• Checking the match between important channels and
  data sources covering them
• Timeliness with which data are provided
• Quality of data coverage
• Respondent burden
• Legal authority of the compilers
• Identifying the most important omissions

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Survey Country Profile
A QUESTIONNAIRE ON THE COMPILATION PRATICES
AND REGULATORY FRAMEWORK OF THE REMITTANCES
MARKET IN THE MIDDLE EAST COUNTRIES was designed
and addressed to the central banks
participating in the Seminar, as well as a
methodological guide.
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I. CONCEPTS AND INSTITUTIONAL FRAMEWOK

• To indicate if the country is adopting the BPM5
  concept according to the IMFs BOP
• Manual, Vth Edition on
• Workers remittances
• Current transfers
• Compensation of employees
• Migrant transfers
• Other
• To describe the institutional framework that
  supports the Central Bank remittances
• compilation task
• Is there a specific or general law or regulation
  that rules the remittances market and the
  remittances services providers (RSP)?
• Who are the agents authorized to participate in
  the local remittances market as RSP (banks, money
  transfers operators, etc)?
• What are the agents that work as RSP but are not
  authorized by the regulation?

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I. CONCEPTS AND INSTITUTIONAL FRAMEWOK

• What are the regulatory requirements to be met by
  a RSP to operate in the remittances
• market?
• Register with a governmental entity
• Authorization and supervision provided by a
  governmental entity
• Identify the institution in charge of the
  regulation and supervision of the RSP and how
• it performs this function
• Is there any legal obligation to report the
  remittances flows? (a standardized report /ITRS/
• Or other specific survey?)
• Is there any threshold applied to the report of
  remittances flows?
• Access to the statistical information on
  remittances by the Central bank or any other
• governmental organization is there any sanction
  provided by the regulation in case of non
• report?

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II- MAIN CHARACTERISTICS OF THE REMITTANCES
MARKET

• Information received and periodicity
• Remittances transactions (amount number),
  Average value, Original currency of the
  remittance, Foreign exchange rate applied, Date
  of receipt or sending of the remittance, Country
  of origin (destination), Recipient (remitter)
  name, Remittances frequency.
• Sources of information used for the calculation
  and/or estimation of the remittance flows
• (distribution in ).
• Banking system reports (ITRS), Other RSP reports
  (not included in ITRS), Other data sources such
  as models (please explain the main facts of the
  methodology), Households surveys (coverage,
  periodicity and statistics compiled), Other
  reports.
• Structure of the remittance flows by modality of
  sending (distribution in ).
• Electronic funds transfers, Prepaid funds
  (prepaid cards, money orders, banker's draft),
  Credit cards, Remittances in cash
• Remittances in kind, Other.
• Structure of the remittance market by type of RSP
  (distribution in )..
• Banks, Foreign exchange bureaus, Other financial
  institutions, Post offices, Courier companies,
  Money Transfers Operators (MTO), Informal
  channels

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II- MAIN CHARACTERISTICS OF THE REMITTANCES
MARKET

• Structure of the remittance market in terms of
  payment formats used to deliver remittances
• Cash, Checks, Account to account transfer, In
  kind, Others. (distribution in ).
• Structure of the remittance market by remittance
  channel (Ref. RCG, paragraph 2.18)
• Formal remittances channels, Semi formal
  channels, Informal channels. (distribution in ).
• Remittances transaction costs.
• Cross check process
• Existence of any Validation process applied by
  the compiling agency?
• Mirror statistics of the main
  recipient (sending) countries used in the
  validation process?
• Migrant flows.
• Number of migrants living abroad, Main countries
  of migration destination (origin), Main
  characteristics of the migrants age,
• distribution by gender, educational level,
  migration status (legal, illegal, refugee,
  other), Economic activity of the migrant and
• economic sector, Average income of the migrant.

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III- COMPLEMENTARY STATISTCS ECONOMIC DATA AND
MIGRATION INFORMATION

• As a first trial of exchanging existent data
  based on 2007 and 2008 statistics for the major
  ten countries
• numbers and values of remittances flows received
  by country of origin
• numbers and values of remittances flows sent by
  country of destination
• Indicators
• Remittances income
• Current Account
• Goods
• Goods Services
• Income
• Current Transfers
• Net inflows of foreign direct investment
• National income
• GDP
• Total population

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Steps towards improvements

• Commitment of the countries in
• Adopting or modifying definitions or country
  practice
• Harmonization of existing methodologies
• Improving estimation methods
• Gathering new data sources (improving coverage)
• Cooperation between partner countries by going
  forward in geographical distribution with a
  specific attention to participants countries in
  order to ensure future mirror statistics
• Production of a database
• A follow up seminar by mid-2010

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Thank you