Bank remittances to Armenia from overseas dipped 9.7% in the first quarter of 2020 when compared to the same period in 2019.

The amount transferred in the first quarter of this year amounted to US$354 million, a decrease of $38 million.

Central Bank of Armenian (CBA) statistics show that remittances significantly dropped in February and March of this year.

In February 2019, remittances from abroad amounted to $140 million. This February, remittances amounted to $123 million.

In March 2019, remittances to Armenia amounted to $132 million. This March, the amount was $118 million.

Remittances from Russia Dip 15.9%

Russia remains the major source of remittances to Armenia, despite the 15.9 decrease in the first quarter of 2020 when compared to the same period last year.

$164 million was sent to Armenia in the first quarter of 2020, a decrease of $31 million.

Remittances from Other Countries Up 3.5%

Despite the drop in remittances from Russia, the amount sent to Armenia from other countries in the first quarter of 2020 increased by 3.5% ($7M) when compared to the same period last year.

The CBA has yet to publish a detailed breakdown on these countries.

Downward trends in consumer purchasing power in Armenia are reflected in the domestic trade data.

In March of this year, compared to the same month of the previous year, the domestic trade turnover in Armenia decreased by about 10%, which directly translates into a decline in the purchasing power of residents.

It is safe to say that one of the reasons for this is the reduction in remittances. It is a direct blow to families whose main source of income is remittances. This leads to a decline in the purchasing power of these families, a decrease in foreign trade in the country, etc.

In recent years, the largest decline in remittances to Armenia was recorded in 2015. That year, compared to 2014, the inflow of remittances decreased by half a billion dollars.  This was due to the reduction of remittances from Russia. This, in turn, was the result of the fall in oil prices on the world market and the collapse of the Russian economy.

Overseas Transfers from Armenia Dip 7.1%

In January-March of this year, individuals sent $266 million overseas through banks in Armenia, a decrease of $20 million (7.1%) compared to the same quarter last year.

About $87 million was transferred to Russia during this period, down 27.6% ($33M) from the first quarter of last year.

As reported earlier, a record amount of money ($1.454B) was sent from Armenia overseas in the form of remittances in 2019. These are remittances people in Armenia sent overseas via banks in Armenia. This is a record amount since 2004, when official statistics were first compiled.

The CBA says such outflows can mainly be explained by a corresponding significant increase in car imports. In other words, the money was transferred abroad in the form of payments for cars.