Holidays and festivals generate the economy as consumption and gifting peak to coincide with celebrations such as Eid, Christmas, Diwali, and other regional or community festivals. Immigrants send money to their family and friends back home during the holidays to showcase their generosity. In a way, thousands of miles separating families are bridged by remittances during the holiday season.
Cultural Significance of Holiday Celebrations
What makes these holiday celebrations significant to the point that immigrants aim to send money to their families back home during these occasions?
Eid al-Fitr
Eid embodies reflection, spiritual renewal, and a celebration of gratitude. This canonical festival of Islam marks the end of Ramadan and is one of the two major holidays Muslims celebrate. In the weeks leading to this holiday, Muslims go shopping for new clothes, gifts, and home decor. If Ramadan is about fasting, Eid is all about feasting, and families create their menu of mouthwatering dishes to serve.
Christmas
Christmas is a Christian holiday celebrated worldwide rooted in the Christian story of Jesus’ birth. It is a time of reflection, gratitude, and celebration of family and love. The festivities include gift-giving, festive decorations, reunions, and special meals.
Diwali
Diwali, or “row of lights” in Sanskrit, is a major religious festival for Hindus, Jains, Sikhs, and Newar Buddhists. It represents the symbolic victory of light over darkness, knowledge over ignorance, and good over evil. Diwali rituals include home cleaning and decoration, shopping and gifting, Lakshmi Pooja, food feasts, and fireworks.
Interestingly, even in other countries, immigrants continue to celebrate and observe these holidays to preserve their culture and live as if they were back home. Of course, the observance of these holidays does not stop there. To make their presence felt in their home country, most immigrants send money to their family and friends back home during these holidays, driving the volume of remittances during these times.
Economic Factors
The spike in remittances during holidays such as Eid, Christmas, and Diwali affects a country’s economy.
Remitting large sums of money into a country can hurt the exchange rates. This happens mostly in countries where most of the GDP comes from remittances. The influx of foreign currency may result in making the domestic currency overvalued. Thus, the country’s exports may be less competitive and imports cheaper. Some also argue that heavy dependence on remittances can create dependency and undercut the recipient’s motivation to work, which may slow economic growth.
Social Influences
Due to family obligations, community celebrations, and emotional connections, remittances spike during Eid, Christmas, and Diwali.
For immigrants, supporting family members during festive holidays is a cultural expectation. Their families use the money they send to celebrate the holidays and participate in local community celebrations. Due to the distance, immigrants send more money to their loved ones back home to maintain ties and feel like they’re participating in the celebration, even if they are thousands of miles away.
Case Studies
Bangladesh
In the first 19 days of March 2025, remittance inflows in Bangladesh surged by 78.57% year-on-year to 2.25 billion USD. For bankers, this surge is due to immigrants’ support to their families during Ramadan in preparation for Eid al Fitr.
Philippines
The Bangko Sentral ng Pilipinas (BSP) data showed that remittances sent by Overseas Filipino Workers increased by 3% to 3.38 billion USD in December 2024 compared to 3.28 billion USD in December 2023. As a predominantly Catholic country, Christmas is a big holiday in the Philippines, hence the increase in remittances in December.
India
During the month of Diwali, people in India increase their spending to support the festivities. The increase in remittances during the month of Diwali has supported the rise in people’s spending.
Conclusion
The surge in remittances during major holidays such as Eid, Christmas, and Diwali reflects more than just economic transactions—it reveals deep-rooted cultural values, emotional ties, and social responsibilities that immigrants uphold despite geographical distance. These festivals are powerful reminders of identity, tradition, and family, prompting immigrants to send financial support to their loved ones back home.
This annual pattern of increased remittances plays a significant role in personal and communal celebrations and in influencing local economies, both positively and negatively. Ultimately, holiday remittances underscore the enduring bonds between migrants and their home countries and the vital role these transfers play in sustaining cultural and familial connections across borders.
If you are an immigrant in Canada, send money using RemitBee. Our remittance services allow you to enjoy fast, easy, and cheap transactions. We will waive your fee when you send over 500 CAD in one transaction! This is especially ideal if you plan to send money back home during Eid, Christmas, Diwali, and other holidays.
