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Ruble Devaluation Leaves Families Living in Georgia without Income

Devaluation of the ruble has sharply reduced the income of families living in Georgia who receive  remittances from the relatives currently residing in Russia.

In November,  the amount of remittances transferred to Georgia amounted to USD 104 million – the data was published by the National Bank of Georgia (NBG). The corresponding figure is 16% or USD 20 million less than the 2013 data, which is associated with a decrease in remittances arriving from Russia.

Russia occupies a leading place with a volume of remittances to  Georgia again. In total USD 45 million were received from Russia in October, which is 43% of the total remittances, but remittances from Russia in foreign currency reduced by about USD 19 million compared with the previous year, which is mainly related to the current financial situation in this country.

With respect to other countries the statistics changes in remittances have not been observed and  Greece remained in the second place  with USD  14 million in November. Total remittances by donor countries is as follows: Russia-  45%, Greece-  14.9%,  8.9% Italy-  5.8%, Turkey-  7% . The  NBG  published data  of remittances sent from Georgia abroad.  In November 2014, in total  USD  15.7 million were sent from Georgia abroad, which is USD 1 million more than last year’s figure.

Economic expert Levan Kalandadze  suggests that the ruble devaluation will have an impact on Georgia in the long run.

He touches on the issue of  the reduction of remittances  and  says that direct money transfers, following  the latest trends,  have reduced and the processes taking place in Russia will further reduce the share of Russian remittances  significantly.

Kalandadze notes  that Russia is one of the biggest trading partners of Georgia and possibly, the ruble devaluation will  reduce exports.

The Russian ruble devaluation has victimized Georgian exporters.