06 February 2010

French policy taking money from the poor?

Sanou Mbaye, a Senegalese economist does a comparison of different European money transfer markets.

Whilst the UK, Italy, Spain, and Portugal are taking steps to try and keep costs low for sending remittances, the French approach relies upon a monopoly for Western Union:
"which controls up to 90% of the total formal transfer volume within Africa's 16-member Franc Zone. Western Union charges fees as high as 25% on transfers to these countries, compared to an average global benchmark of 5%, and has required that Franc-Zone countries sign exclusivity agreements, thereby preventing foreign-exchange bureaux, post offices, and micro-finance institutions from carrying out money transfers."
HT: Duncan Green

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