Money transfers from abroad have decreased

Money transfers from abroad to Georgia have decreased significantly due to the August conflict and the world financial crisis. This has damaged a significant number of the Georgian population and made it harder to keep the Lari rate stable.

A large number of the Georgian citizens who are capable of working have gone abroad to work and maintain their families with the money earned there. These money transfers have increased year by year, but declined after the August war. The amount of money transferred from abroad to Georgia in August was about USD 73 million, USD 23 million less than was transferred in July. The amount of transferred money increased in September, but the increase was about 5 %, whereas there used to be about a 30-35 % increase in transferred funds between July and August.

According to analysts, the decrease in money transfer is related to the world financial crisis. “The countries which have been the sources of money are facing serious financial crisis,” said the chief of the National Bank David Amaghlobeli. It should be also noted however that about 60% of the foreign money transfers came from Russia, but analysts think that the volume of transfers might increase by the New Year.