Remittance from Russian to Azerbaijan Increased

Remittance from Russian to Azerbaijan Increased

CESD: Amount of remittance was about $ 2 billion in 2011

The volume of individual money transfers from Russia and Azerbaijan made $955m in 2011. According to the Central Bank of Russia reports that the volume of individual transfers from Russia to CIS countries in 2011 reached $16.7bn which is 24% more than in 2010 ($13.5bn).

Uzbekistan with $4.9bn (28% growth) has become a leader for the volume of transfers of funds from Russia in 2011. It is followed by Ukraine – $3.1bn (+25.5%) and Tajikistan – $2.7bn (+26%).  The transfers to Kyrgyzstan made $1.4bn, Moldova-$1.6bn, Armenia-$1.2bn, Belarus-$458m, Kazakhstan-$290m, Turkmenistan-$22m last year.

CESD experts stated that amount of remittance from Russia to Azerbaijan is much higher than individual bank transfers; “The central bank data, in fact, significantly underestimate actual remittance inflows. The concern is most apparent because of sending via money transfer operators, therefore Central Bank of Russia flowing to Azerbaijan are 23 percent greater than the total amount of remittance inflows reported by the State Statistic Committee of Azerbaijan. According to Russian mass-media, amount of remittance from Russia to Azerbaijan is about $ 3 billion. Azerbaijan State Statistic Committee reported amount of remittance as $ 700 million. CESD survey, however, found that amount is remittance from Russia to Azerbaijan is as a minimum 2 times higher that the Central Bank reported amount. It means that amount of remittance is not less than $ 2 billion per year. More than 80 % of total remittances originate in Russia”.

CESD mentioned that remittance keep many families out of poverty. Remittances, however, are the hidden economy of Azerbaijan; there is no official accurate calculation.  Preliminary data indicate that the dollar remittance outflows from Russia increased of 20 percent in 2011. This shows a strong recovery after a decline in 2009. Despite the strong recover in 2011, remittances sent from Russia do still not reach the pre-crisis levels of 2008.

© CESD, 2012

 

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