Individual Bank Remittances to Armenia Up 13% to $705 Million: Russia Remains Largest Source
During the first five months of this year, individuals from around the world sent some US$705 million to Armenia via banks. Compared to the period in 2018, the amount of remittances increased by $81 million, or 13%. This data is provided by Armenia’s Central Bank.
As usual, most of the individual remittances in the above period, $352 million, was sent to Armenia from Russia. This is some $4 million less than the same period in 2018. The effect of Russian ruble fluctuations on money transfers is great.
In 2017, the appreciation of the Russian ruble against the dollar had a positive effect on dollar money transfers, leading to the growth of money transfers. And the decrease in remittances from Russia since last year is mainly conditioned by the depreciation of the ruble.
The amount of money coming from the United States has increased dramatically this year. Individual remittances from the U.S. totaled $ 105.3 million during the first five months of 2019, an increase of $28 million over the same period in 2018.
It should be noted that all the indices in the article show the amounts transferred by individuals to the banking system. Amounts transferred by hand, or through a third person, are not included.
Transfers from France to Armenia have considerably decreased. In the first five months of 2019, individual remittances from France totaled $13.3 million, compared to $28 million in the same period last year.
Transfers from “other countries” amounted to $187.2 million, an increase of nearly $74 million compared to the same period last year.
Individual transfers from Armenia, via banks, in the first five months of 2019 amounted to $510 million, a rise of $50 million (11%) over the same period last year.
Thus, the net inflow amounted to about $195 million, approximately $31 million or 18.7 percent more than in January-May of the previous year.
The country receiving the largest amount of the outflow remains Russia.
According to Armenia’s Central Bank, individuals transferred $176.3 million to Russia in the first five months of 2019, about $11 million more than last year.
Thus, the tendency started last year, with remittances from Russia to Armenia decreasing and remittances in the opposite direction increasing, is continuing.
Transfers from Armenia to the United States also increased, up from $82 million last year to $102 million this year.
Outflows from Armenia to “other countries” not specified by the Central Bank amounted to $166 million in the first five months of 2019, up $36 million over the same period last year.