Somali Remittance Prices and Corridors (Full Length Report)

The very aim of this research is to track the remittance prices in Somalia. We are also tracking the objective of the World Bank Group of 5x5 amid at reducing the cost of remittance to five percent within five years. The target 5x5 is the GOAL OF 2020 which is already here. This report does not give any coverage about the reason why Somali businesses appear and suddenly and mysteriously vanish. The report also fully marginalized the impact of Corona virus - Covid 19 could have on Somali remittance business. We have tracked the average cost percentage in 17 remittance firms. According to 5x5 agenda of the United Nations and the WBG, Transfer Galaxy Remittance Company serves the lowest cost of remittance, 5.3 percent excluded Qaran Express which has been out of business since 2012. We have also tracked and displayed the average costs of seven years in Somali remittance prices: the reason why we have selected the range of seven years from 2013 - 2019 is the full four quarters of data in the chosen years, (see fig.5). The amount of money remitted from United Kingdom is 120 British Pound that equals 200 USD and 300 pounds that equals 500 USD. Money remitted from Netherlands is 140 Euros which equals 200 USD. However, Money remitted from Sweden is 1,700 Kr and 4,300 Kr denominated 200 and 500 USD respectively. Somalia also used to receive money from United States in 200 and 500 USD amount. Somali diaspora in Australia also remitted money to Somalia in 200 and 500 AUS dollar assumed to be equaled the American dollar. This report has nothing to do with the recent allegations of Reuters News Agency in which she claimed that Somali remittance companies are involved money laundry with arms dealers (Houreld, 2020). The aim of this report is to track remittance prices as per objective of the United Nations Agencies such as World Bank and United Nations Developmental Agencies. The second aim of this research is to build database in the form of hard copy in journals and magazines for the benefit of the Somali students who every year graduate from the Somali local universities. For potential research purposes, we have built tremendous number of data tables in two annexes: in annex one, the first table displays quarterly and yearly variations of money remitted from G8/G20 countries to Somalia by remittance companies. The remittance sending countries in G8 are Great Britain and the United States. Netherlands, Sweden and Australia are among G20 member countries that send remittance to Somalia. Tables from 2 - 33 show quarterly calculated money remitted from G8/G20 countries. In this category, information of payment instrument, sending location/access point, transparency, pick-up method, amount of remitted money in USD, remittance companies involved, ID number of transactions, source and receiving country and the period is displayed. Tables in annex two, an extended information concerning amount of money in local currency, fee in local currency, amount denominated in USD, speed actual, FX rate, FX margin, total cost percentage and interbank exchange rate are displayed.