USA - Morocco Remittances Research Report

By Driss R. Temsamani & Hannah Roeyer

USA---Morocco-Remittances-Research-Report

On March 2009, the 361 Degrees Institute conducted a survey on remittances from Moroccans residing in the USA to Morocco. The research contemplated barriers, trends, habits and opportunities that exist in regards to the money flow to Morocco from the United States.

According to the World Bank, Moroccans Living Abroad sent remittances totaling 6.7 billion USD last year. In 2003, the last year for which data is available, Moroccans in the United States alone sent back a little over 200 million USD. This is a significant increase from 1990, when the reported 19,000 Moroccans living in the U.S. remitted 71 million dirham. These numbers represent the currency flowing through official channels such as bank accounts and money-transfer services, with the real total, including unreported gifts and money carried back or sent with others, likely much higher; Refass (1999: 102) has estimated that in the case of Morocco, between one quarter to one third of all remittances travel through these unofficial channels.

Although academics have commonly predicted a decline in the amount of money flowing to Morocco, a still-unexplained remittance upsurge in 2001 has lead to historically high levels that have yet to drop, and remittances from the United States do not seem poised to decrease significantly in the near future. The impact of the global recession will be unpredictable, but the history of remittances to Morocco shows that generally, as Moroccan GDP decreases, remittances increase. This is significant for those living in Morocco during a dip in GDP, as the poverty-alleviation effects of remittances have been well established (see especially Page & Plaza 2005).

In the results of this survey, four main methods emerged as the most widely used for transferring money: Western Union was reported to be the most popular company, with respondents’ personal banks and MoneyGram International being the next most widely used methods. Sending money with friends or family traveling back to Morocco was the fourth most frequent means of getting it back to Morocco, possibly reflecting respondents’ frustrations with the banking system, as noted many times in written comments returned with the surveys.

In selecting one particular method over another, the speed of the fund transfer was the most important factor; with the amount fees involved being the second main issue. The security of the transaction and the ease with which the recipient could get the money were the other two most widely reported factors in choosing a method of sending.
The biggest factors barring people from sending money more often to Morocco were, foremost, the currency exchange rates, followed by high fees and an inability to afford to send any additional money.

Many also commented that the current banking system is too unreliable and sometimes slow, and that this lack of confidence in the banks encourages people to send back cash or use the black market. The frequency with which people send money to Morocco varies widely - 22% of respondents send money 2-3 times a year, an additional 16% between 4-5 times a year, and 19 percent 12 or more times a year.

For most, it takes less than one day for money to travel from the USA to Morocco. Significantly, a full seven percent of respondents said that at times it can take a month or longer for money to get from the United States to its intended recipients in Morocco. It is this type of holdup that we hope to address with our research.
Of those who sent money back, 80% reported that it was for a family member, whereas 20% reported that it was for themselves, generally either for savings (28%) or investment (28%) purposes, or for a loan (24%).

Remittances are an extremely important source of income in Morocco, comprising an average of 9% of the country’s GDP every year since 2001. At the same time, the Moroccan American community is growing fast – up from almost 40,000 as reported in the 2000 census to anywhere from 150,000 to 300,000 today. Clearly, remittances from the United States to Morocco are becoming a more significant force every day, and will only increase in importance as more and more people settle here and begin to send money back to those still in Morocco. With this research, the 361 Degree Institute hopes to better understand the remaining concerns to be addressed in this increasingly significant issue and to work with the appropriate institutions to find innovative solutions.

For the full research results visit the following site:
http://www.zoomerang.com/Shared/SharedResultsPasswordPage.aspx?ID=L23P5KX9HCSA

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ahmed in la : Interesting data and analysis.
I would like to add:
1. I find Money Gram to be cheaper than Western Union.
2. Banks used to transfer any amount from your American account to any other account in Morocco for about $15 and in a few days. With the BS of ts3oud hdash, it is a nightmare to send money now as a transfer.
3. Sending more than $10,000 will bring an IRS investigation on you.
4. Sending $9.999.00 will bring on a worse IRS investigation.
5. Money Gram and Western Union are received in most Moroccan banks and post offices.
6. The rate of exchange in the black market will always give you more for your money, but the difference is not worth the risk. Not standing in line at the bank and not having to prove your identity, are priceless!
7. 20 years ago, the dollar traded for 12 Dirhams.
Today, the dollar is struggling to stay above 8 Dirhams.
8. The more insecurity we feel about the American economy, the more we should put away, in Morocco, now, more than ever. This uncertainty might explain the consistency of remittances and their frequency.
9. dir 3lash terje3 a hmeyda.

jjalili : This is without counting the money we take with us when we go there to visit stuffed in our pockets or socks, even though, responsible(governement) in Morocco still treat us (MRE from north America) like garbage and no one cares about our needs which they are:
1- Lower la RAM tickets
2- install a Moroccan affiliate Bank ( like Banque Chaabi in EU) for those who want to apply for a mortgage in Morocco.
3- Get us access to all the Moroccan TV channels like in EU and especially AlRiyadiyah
3- Lower or even wipe out all the consulate fees for passport, ID, affidavit...currently, we are being charged 3 times what it is paid in Morocco+ the shipping fee. I paid $25 for an affidavit stamped with a Moroccan Stamp of 2DH.
I can't tell you but I went NUTTS and swore never used their services again.
4- add more consulate across the states especially for those who live in the West coast. I'm from Boston, but I can feel your pain guys whenever I go there to visit. I lived in France for a while, and there's a Moroccan consulate in every village not just a major city.
5- Build more Moroccan mosques with Moroccan Imams like I saw in Germany, Italy, France....

I can't think of anything else, but maybe if I do, I'll add more notes ( Ela daha fina chi wahad Lhih), otherwise, please feel free to add your list of demands. Just remember it starts with you.......

Allah Ykoun fi 3ayne el jami3

jjalili : I just heard that because of the recent drop on money transfers by the MRE to Morocco by 15%, the government has taken the decision to make all of your funds wiring to Lebled free of charge (Fabour). Hmm, it makes me think: Are they so desperate on getting the money? Like I said, it starts with you, let's boycott all transfers until we see some real changes for our conditions. I know for some brothers it's catch 22 and it is a requirement they live with to support a father, a mother or a brother...and that's the card these responsables are playing with, let's be our own judges on that and make it our own decision.
Allah Y3awan L'jami3

sueRabat : Salamu Aleycom

I love the articles & comments in this site. So many bring smiles to our faces and hearts.

I think most moroccans, who go back regularly to morocco bring a lot of money they spend, or give to their loved ones, plus the Zakat and Sadaqah Money for the poor and needy.

My friends and I seldom sent money via moneygram, western Unions or a bank. However, when we go to Morocco, I & most of the people I know, we spend about $5,000 to $10,000 excluding the Round Trip Ticket.

Usually, we give money to the loved ones, parents, siblings or a spouse still waiting back home. Then a big portion of the money is our expenses there. Most moroccans in USA tend to be independent,(not freeloaders) and dislike inconvenience, ie: we like to rent cars, go to good hotels, travel to nature and historical sights.....etc..

Another type of expenditure would include the money we either invest in Morocco, ie, housing, furniture, gifts & souvenirs we bring back. I can't come from Morocco without Zit Argan, may be some Artisanat and surely a Kaftan and even some Gold other times. Most Moroccans I talked to, they take expensive electronics to their loved ones, Laptops, Video cameras, Ipods, watches, meddication, and a lot of good Clothing and other household stuff.

I would say for every Dollar declared, we probably spend in Morocco 100 times more.

Many of my friends in the USA have bought land, houses or apartments, and those who chose to marry in Morocco, have a a whole family to support on a regular basis.

I had an interesting run with the Douanes au Maroc in 2008. I wanted to declare the money I had on me, a large sum. The douanier refused, he said don't worry about it, go enjoy yourself. I insisted, but he just did not want to be bothered. so I just walked out of the airport & realized that this is Morocco, many people do not like to do their WORK. So, good luck trying to collect any Data about Money to Morocco.
Thank you for the Article, very nice, & Salame All
September 2009

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