Colombia’s Remittances Hold Above US$1 Billion for 26 Months as Banks Move to Re-Bank 10 Million
COLOMBIA · ECONOMY
Key Facts
—The streak: Colombia’s remittances have not fallen below US$1 billion for 26 consecutive months.
—July: Families abroad sent US$1,078.39 million, according to central bank data reported by La República.
—The plan: Banking association Asobancaria proposed a public-private programme to re-bank 10 million Colombians.
—The target: The plan takes on the “gota a gota”, illegal lenders who trap the unbanked at extortionate rates.
—The catch: The inflow looks flat in dollars while foreign investment slides; July FDI fell 31 percent to US$629 million.
—The stage: The proposal came at Asobancaria’s 60th convention in Cartagena, which ran from 26 to 28 August.
Colombia’s remittances have held above US$1 billion a month for just over two years. The country’s bankers used their Cartagena convention to propose bringing 10 million people back into the formal financial system.
A 26-month streak above US$1 billion
Remittances to Colombia reached US$1,078.39 million in July, La República reported on 29 August. It was the 26th consecutive month above the US$1 billion mark, according to Banco de la República figures.
The streak began in mid-2024 and has survived rate cycles and a weaker peso. April 2026 even topped US$1.1 billion, the newspaper reported at the time.
Last year remittances grew about 13 percent, according to figures carried by Prensa Latina. Growth has since cooled, though the level remains historically high.
Households feel the streak in the exchange rate and in the price of staples. A steady US$1 billion a month also cushions the current account when other inflows disappoint.
Who sends the money, and why it keeps coming
Most of the money comes from Colombians working abroad, above all in the United States and Spain. They send it to parents, children and siblings back home.
The transfers pay for food, rent, school fees and debt service in millions of households. For many families the money is not extra income but the main one.
Many senders left during the migration waves of the past decade. Their monthly transfers have become a quiet, permanent feature of the economy.
Economists treat these transfers as one of Colombia’s most stable sources of foreign currency. They are now among the largest inflows the economy receives each year.
Asobancaria’s plan to re-bank 10 million people
The banking association Asobancaria used its 60th annual convention in Cartagena to propose a re-banking programme. The goal is to bring 10 million Colombians back into the formal financial system.
Caracol Radio described the initiative as a public-private effort. Asobancaria’s president, Jonathan Malagón, presented it during the convention, which ran from 26 to 28 August.
The explicit target is the “gota a gota”, the illegal loan sharks who lend at crushing rates. The name means “drop by drop”, a reference to daily collections often enforced by intimidation.
Their customers are usually people the formal banks never reached. Re-banking matters because an account is the entry point to cheaper credit.
Financial inclusion has narrowed for years as banks trimmed costs and small towns lost branches. Consumer groups say that gap pushed the poorest borrowers toward informal credit.
The contrast: foreign investment keeps sliding
The remittance streak stands out against a weaker investment picture. Foreign direct investment fell 31 percent in July to US$629 million, El Colombiano reported.
It was the 15th consecutive month with FDI below US$1 billion. Workers abroad now send home more than foreign companies bring into the country.
That gap says something about where confidence sits. The diaspora keeps betting on Colombia’s households faster than boardrooms bet on its projects.
The government has blamed regulatory uncertainty for the investment drought. Business groups cite similar causes and ask for clearer rules.
What to watch from here
The first test is whether the re-banking proposal becomes a concrete programme with funding and dates. Conventions produce many announcements, and few survive the quarter.
The second is the August remittances reading, due from Banco de la República in September. A 27th month above US$1 billion would carry the streak into a third year.
The third is the peso, which changes what each dollar buys once it arrives. A weaker currency stretches each transfer further, and a stronger one does the opposite.
Frequently Asked Questions
How long have Colombia’s remittances stayed above US$1 billion?
For 26 consecutive months through July 2026, when they reached US$1,078.39 million. The figures come from Banco de la República, reported by La República.
What did Asobancaria propose in Cartagena?
A public-private programme to re-bank 10 million Colombians. It was presented at the association’s 60th convention, held from 26 to 28 August.
What is the “gota a gota”?
Illegal lenders who offer small loans at extortionate rates and collect daily, often through intimidation. The name means “drop by drop”.
Who leads Asobancaria?
The association’s president is Jonathan Malagón. He presented the re-banking proposal during the Cartagena convention.
How do remittances compare with foreign investment in Colombia?
In July the inflow was US$1,078.39 million while foreign direct investment fell 31 percent to US$629 million. It was FDI’s 15th straight month below US$1 billion, El Colombiano reported.
Connected Coverage
We covered the fight over the state oil company’s board in Colombia’s Ecopetrol board race. We also tracked the legal bill in Colombia’s arbitration claims and the security response in Cesar’s anti-drone plan.
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