In nominal dollar terms Latin Americaand the Caribbean region remains the largest recipient of(recorded) remittances 2006. However, as a share of grossdomestic product (GDP) remittances are highest in the MiddleEast and North Africa region. Due to a lack of data,remittance flows to Sub-Saharan Africa are grosslyunderestimated. Recorded remittance flows have grownrobustly in virtually every region, although most quickly inEurope and Central Asia and in East Asia and the Pacific.The doubling of recorded remittances over the past fiveyears is a result of: (a) increased scrutiny of flows sincethe terrorist attacks of September 2001; (b) reduction inremittance costs and expanding networks in the remittanceindustry; (c) the depreciation of the U.S. dollar (whichraises the value of remittances denominated in othercurrencies); and (d) growth in the migrant stock andincomes.Although the United States remains the largestsingle source of remittances, many remittance-receivingdeveloping countries also have a significant number ofmigrants in countries in the Euro area. Since remittancesreceipts in developing countries are typically measured inUS dollars, movement in the Euro-dollar exchange rates canhave a significant valuation effects on remittance, evenwithout accounting for the wealth effect when the Euroappreciates or depreciates in real terms relative to the dollar.
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