Inflow of private transfers from Russia to Armenia continues to  increase significantly

ArmInfo.In January 2023, the net inflow of private remittances to Armenia due to the significant increase in receipts from Russia increased noticeably- 4.2-fold  compared to January 2022, (from 25.2% growth a year earlier),  amounting to $170.2 million in the reporting month.  

Moreover, the net inflow of private remittances from Russia increased significantly  -14-fold on a y-o-y terms from the 7.2% decline of the previous year,  reaching $ 254.2 million, while the net inflow of transfers from the  United States turned from 48% growth towards 61,6% decline, amounting  to $10.6 million. This is evidenced by the data of the Central Bank  of the Republic of Armenia.

This was the result of a sharp acceleration in the y-o-y growth in  the inflow of transfers from Russia to Armenia from 4.5% to 7-fold,  which was also observed at a more restrained pace in the outflow of  transfers from Armenia toRussia - from 15.5% to 17%. At the same  time, the volumes of inflow and outflow of transfers in the direction  of the United States showed a multidirectional y-o-y trend, in  particular, the inflow of remittances from there decreased by 1.4%,  and the outflow to there increased 2.2-fold, while a year earlier -  an increase in inflow by 15.7% was accompanied by a decline in  outflow by 20.4%. As a result, in January 2023, the volume of inflow  of transfers from Russia amounted to $281.2 million, outflow to the  Russian Federation - $27.03 million, and the volume of inflow and  outflow of transfers in the direction of the United States amounted  to $40.3 million and $29.7 million, respectively.

In total, the inflow of transfers from individuals to Armenia  accelerated the y-o-y growth from 11.8% to 3- fold, while the growth  of the outflow of transfers accelerated from 6.5% to 2.5-fold, the  volumes of which in January 2023 amounted to $386.1 million and  $215.9 million, respectively.  In the inflow, the share of Russia in  y-o-y terms increased from 31.8% to 72.8% (against 42.6% in January  2019), while decreasing in the outflow from 26.4% to 12.5% (against  53.8% in January 2019). And the share of the United States decreased  in y-o-y terms both in inflow - from 32% to 10.4%, and in outflow -  from 15.1% to 13.7%, being lower than the corresponding indicators of  the pre-COVID period - 13.7% and 14.7 % in January 2019.  In January  2023 alone, the net inflow of transfers to Armenia decreased by  43.6%, as a result of an almost equally noticeable decline in inflow  and outflow by 34.7% and 25.3%, respectively. In particular, the  inflow of transfers from Russia and the United States decreased by  33.5% and 36.5%, which was also observed in terms of outflow in these  directions - by 55.3% and 26.2%, as a result, the decline in net  inflows from Russia was more moderate (30%) than from the US (54.3%).  As a comparison, we note that in January 2022, a similar trend was  observed, with the only difference that then the inflow and outflow  towards Russia showed an equally significant decline (51.4% and  49.5%), while towards the United States a downward the inflow and  outflow trend was similar to the current one (35% and 28%), as a  result of which the decline in net inflow from Russia was more  significant (54%) than from the US (38%)