BAKU, Azerbaijan, Jan. 27
By Ilkin Seyfaddini – Trend:
Uzbekistan's Center for Economic Research and Reforms under the Presidential Administration of Uzbekistan (CERR) and European Institute of Asian Studies (EIAS) will work together on reducing the cost of international remittances to Uzbekistan, Trend reports referring to the center.
At a meeting with the Director of the European Institute of Asian Studies Axel Goethals and Program Coordinator Albert Turkstra held at CERR, the parties discussed introduction of alternative services that will increase the real incomes of migrant workers.
Axel Goethals noted that today, many people have to rely on such services as Western Union or MoneyGram. These services charge rather high fees for facilitating such transactions (according to the data published by the World Bank, the average cost of sending $200 is $14).
It was also noted that financial technology can play an important role in reducing the cost of operating and launching financial services.
"The future of financial technology and cross-border money transfers may lie in services that create superior technology. High-speed transactions and inexpensive costs with strong security are crucial in determining which platform will stand out," Goethals said.
To increase the efficiency of remittances, the European side proposed the introduction of innovative products, digital technology, including the technological advantages of commercial banks. In addition, the importance to create a regulatory framework that will clearly define the future direction of development and close cooperation between market participants, was stressed.
Following the meeting, a preliminary agreement was reached to work together on reducing the cost of international remittances through fintech and the development of financial instruments to finance infrastructure, in particular, green bonds and portfolio investments.
European Institute for Asian Studies is a policy and research think tank based in Brussels. Its research focuses on finding ways to comprehensively strengthen ties and cooperation between Asia and Europe.