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MONEYGRAM INTERNATIONAL, INC.

(MGI)
  Report
Delayed Nasdaq  -  04:00:00 2023-02-03 pm EST
10.81 USD    0.00%
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01/30Moneygram International Inc : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
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SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

King dollar commands surge in remittances

11/10/2022 | 04:41am EST
FILE PHOTO: A picture illustration shows U.S. 100-dollar bank notes

(Reuters) - Seafarer Jhan Kharl Rodica recently returned home to Manila after an eight-month voyage and bought a townhouse outside the city, courtesy in part, he said, of the U.S. dollar's best year in a generation.

A marine engineer who worked at an oil tanker around Africa and Asia this year, Rodica is paid in dollars and has been wiring extra cash back home - part of a worldwide trend that has driven a surge in remittance volumes as the dollar has climbed.

The cash is well received in countries, such as the Philippines, where living costs are soaring, providing a lifeline for families and even some smaller economies that depend on it. The World Bank estimates remittances to low and middle-income countries will rise 4.2% to $630 billion this year, and the flow is another sign of the far-reaching consequences of the dollar's gains.

The U.S. dollar index, which measures its performance against a basket of major currencies, is up 14.5% this year.

It has climbed more than 20% against some smaller currencies that see sizeable remittance flows, such as the Bangladesh taka or Pakistani rupee, which is encouraging workers to send extra cash.

"When there is strength in the U.S. dollar, often we see an increase in new U.S. customers... as well as customers in certain markets seizing the opportunity to get more local currency home," said Pankaj Sharma, executive vice president for global remittance business management at Remitly.

GRAPHIC: Dollar rally -

Transfer volumes at Remitly leapt 44% to $7.5 billion in the September quarter. Larger rival Wise said volumes were up 49% to 24.4 billion pounds ($28.2 billion) in the July quarter. Wise shares have more than doubled since July.

MoneyGram International and PayPal Holdings have also posted an uptick in turnover and transactions in their third quarter.

The jump is all the more noteworthy as remittances, rooted in necessity, have long been steady and reliable flows, and more sensitive to employment and growth than currency moves.

The dollar plays an outsized role in remittance transfers because a lot of wage earners are paid in the U.S. currency, or, for expatriates in places such as Hong Kong or the Persian Gulf, currencies pegged to it.

To be sure, currency moves do not change the prime motive for such payments and plenty of those sending money back home are insensitive to them.

"You never know what will happen with these rates," said Albert Javier, a Filipino-American living in the United States who has been sending remittances for nearly two years.

"I totally understand people waiting it out and gunning for the prime exchange rate, but to me, it is more important that my family gets the money they need, when they need it."

Still, Western Union and Wise both noted currencies' relative strength do tend to influence volumes, and for Rodica, the Filipino sailor, who is 26, it has provided a cushion for his partner and twin daughters in uncertain times.

"When I started my career in seafaring couple of years ago, a dollar was around 47 pesos, but right now it is over 58 pesos," said Kharl, an increase of more than 23%.

"Some of us get to match or not get too affected by inflation because we earn in U.S. dollars."

(Reporting by Harish Sridharan in Bengaluru; Additional reporting by Neil Jerome Morales in Manila; Editing by Tomasz Janowski)

By Harish Sridharan


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BRENT OIL 0.53% 80.37 Delayed Quote.-7.24%
BRITISH POUND / US DOLLAR (GBP/USD) 0.15% 1.20605 Delayed Quote.-0.35%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.03% 0.7453 Delayed Quote.1.00%
DOW JONES AFRICA TITANS 50 INDEX -0.63% 477.49 Real-time Quote.4.86%
DOW JONES FXCM DOLLAR INDEX 0.93% 12808.36 Real-time Quote.-0.28%
EURO / US DOLLAR (EUR/USD) -0.05% 1.07847 Delayed Quote.0.85%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.56% 0.0121 Delayed Quote.0.62%
MONEYGRAM INTERNATIONAL, INC. 0.00% 10.81 Delayed Quote.-0.73%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.10% 0.63187 Delayed Quote.-0.37%
PAYPAL HOLDINGS, INC. -1.66% 85.52 Delayed Quote.20.08%
REMITLY GLOBAL, INC. 3.01% 13 Delayed Quote.13.54%
S&P AFRICA 40 INDEX -0.90% 158.08 Real-time Quote.4.70%
THE WESTERN UNION COMPANY -0.83% 14.28 Delayed Quote.3.70%
WISE PLC -1.20% 591 Delayed Quote.6.29%
WTI 0.33% 73.882 Delayed Quote.-8.79%
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Financials (USD)
Sales 2022 1 306 M - -
Net income 2022 22,6 M - -
Net Debt 2022 - - -
P/E ratio 2022 47,0x
Yield 2022 -
Capitalization 1 044 M 1 044 M -
Capi. / Sales 2022 0,80x
Capi. / Sales 2023 0,76x
Nbr of Employees 3 072
Free-Float 90,3%
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Number of Analysts 2
Last Close Price 10,81
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Managers and Directors
W. Alexander Holmes Senior VP-Strategy & Investor Relations
Brian Johnson Chief Financial Officer
Anna Greenwald Chief Operating Officer
Andres Villareal Senior VP & Deputy Chief Compliance Officer
Robert L. Villase˝or Secretary & Chief Administrative Officer
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