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.