I send money to Brazil on a regular basis. My family comes from a rural part of Brazil. We first moved to the United States in the mid 70s where my father started a painting business. Through the years, more of my family has moved to America. Still, half of my family still lives in a rural state in Brazil called Amazonas in the Northeastern part of Brazil bordering Venezuela and Colombia.
For decades, Amazonas were one of the poorest states in Brazil, and it still is. However, the industrial sector of the Amazonas has made Brazil one of the major global competitors today. For years, my family worked in the fields of the rubber industry or the factories in Manaus manufacturing rubber.
Now, the town of Manaus manufactures mobile phones, electronics, and motorcycles. Agriculture only makes up 4% of its GDP (gross domestic product). Manaus was once one of booming cities in the 1800s. The rubber industry brought luxury to our cities, but not without a price of overworked natives and poor health conditions. The Brazilian monopoly of rubber had a slow death when the British and Dutch set up plantations in Southeast Asia.
The larger cities eventually fell into poor shape. My father was the first person to move out of the region and to the US. He would send money to Brazil on a regular basis. We would wait forever on the mail courier to get the money to us. Sometimes, it took months.
Through the years, my mother was able to start saving money. We no longer suffered trying to meet the daily needs of food, clothing, and shelter. My brothers and sisters received an education. I moved to the US with my father and started sending more money back home. I married a beautiful Brazilian woman from San Paulo and started my own family in the US.
I would still send money to Brazil on a monthly basis. The last time I tried to send money through a mail courier, it never made it back to my family. I started sending it through the financial institutions, but soon the $300 dollars a month that I would send was so riddled with fees that the amount was closer to $200.
Finally, online money transfers became a thing of the norm. I have to admit that my aunts and uncles were resistant to the FedEx van that pulled up with a piece of plastic. They didn't want to use it. They were so used to dealing in cash. Eventually, they began to appreciate the safety and extra piece of insurance that the card and PIN offered opposed to the cash-under-the-bed method.
The $200 dollars that I was now sending shot back up to $300. I'm so proud of our little grassroots effort to reduce poverty within my family. I have cousins that have a college education and work for major manufacturers in the accounting department. I have aunts and uncles that were finally able to purchase pieces of land and offer specialty crops like acai berries and specialty fruits and vegetables.
If you send money to Brazil on a regular basis, I urge you to really think about the methods you use because the little bit of money you save has a huge impact on the poverty level in Brazil.
Send Money To Brazil
Most of the people who send money online to Brazil come from the United States (42%), Japan (32%), or Germany (16%). Brazil is second to Mexico in receiving remittance from working migrants in Latin and South America. The Central Bank of Brazil reported over $2.8 billion sent through formal corridors. Online remittance is largely responsible for the effort to make a more accurate account of the money.
The diaspora between Japan and Brazil went back and forth for years. Recently, a new generation of Brazilians has dual citizenship in both Japan and Brazil and send money to Brazil on average $600 a month.
The United States comes in at an average of $400 to their relatives back home. Economic analysts say that the impact from migrant workers in the US makes a phenomenal impact on narrowing the gap between the ultra rich and the extremely poor in Brazil.
Traditionally underprivileged societies in Brazil barely met their daily consumptions needs of food, housing, and shelter. The reduction of the poverty level in Brazil greatly decreased because of the increase in remittances. In the past, migrant workers had to spend a large amount of their paycheck on transfer fees.
More people are choosing to send money online to Brazil because sending physical checks through snail mail takes too long. Wire transfers are very difficult to track and quite expensive. There are a number of reasons that online remittances gained preference over traditional methods including:
1. Easy Tracking
The sender and receiver can easily track the status of the money online from the time the money was sent to the time it's credited in the receiver's account.
2. Security
The online money transfer to Brazil bypasses all the crime associated with the mail couriers. In addition, the method is much more discreet. The ATM card is PIN-protected and the withdrawal amounts are less prone to crime statistics compared to other methods.
3. Affordability
Online remittance companies heavily compete with each other to keep the transfer fees low. Plus, the overhead of online remittances allows the companies to offer much cheaper prices than the traditional financial institutions.
4. Fast
You don't have to wait because the transfer is automatic.
The sender simply puts money on a debit card by going online. If you prefer to make a phone call, many companies offer this service, too. The debit card ships directly to the receiver's door via FedEx. You can recharge the card at any time and withdraw money from any ATM machine in Brazil.
There's no shortage of ATM machines in Brazil. From the smallest town to the biggest city, ATM machines are now a common occurrence as Brazil becomes a major player in the global community.
Online money transfers to Brazil changed the face of remittance in the 21st century. Due to the ease of transferring money, more families gravitate toward migrant work. Thus, the influx of money increases to working-class and poverty-stricken families. Some even consider the reduction of transaction fees, a grassroots effort to alleviate poverty.
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