Russia ranks first in money transfers to Georgia
Money transfers from Russia to Georgia
The volume of remittances to Georgia is at an historic high. In January-October 2022, Georgia received $3,316,000,000 – 41% more than all remittances received last year, as reported by the National Bank.
The reason for the record growth –money transfers to Georgia from the Russian Federation, which for ten months totaled one and a half billion dollars. This is three and a half times higher than all remittances that came from Russia in 2021.
According to October data alone, Georgia received a total of $502,000,000. Most of this amount, more than $299,000,000, was transferred from Russia. Compared to October of last year, the volume of transfers from Russia increased by 726%.
Countries whence the most money was transferred in October:
- Russian Federation – $299.28 million;
- Italy – $35.72 million;
- United States – $29.98 million;
- Greece – $19.13 million;
- Israel – $16.43 million;
- Kyrgyzstan – $16.21 million;
- Germany – $15.44 million;
- Turkey – $8.90 million;
- Kazakhstan – $8.32 million;
- Armenia – $4.97 million.
After the Russian invasion of Ukraine, the Asian Development Bank (ADB) predicted that remittances to Georgia would decrease due to the war and anti-Russian sanctions. However, the trend developed in the opposite direction in parallel with the increase of migrants from Russia to Georgia.
According to the PMC research center, a significant number of Russian citizens send rubles to Georgia, convert them into dollars and return them in foreign currency to Russia, selling it on the black market for profit.
According to the organization, this may also be the reason for the sharp increase in remittances coming from Russia. The National Bank calls the increase in money transfers from Russia one of the reasons for the strengthening of the national currency.
- Georgia’s economic dependence on Russia is growing
- “Lack of political will” – Why Georgia does not join anti- Russian sanctions?
According to the World Bank, Georgia ranks 21st in countries dependent on remittances. Tonga ranks first, with 37.2% of its GDP coming from remittances. In second place is Somalia with 35.3% and Kyrgyzstan third at 31.3%.