Negative tendencies in currency transfers
By Messenger Staff
Tuesday, April 21The National Bank of Georgia states that in March 2009 USD 60.6 million was transferred into Georgia, almost 25 percent less than in March 2008. This is a demonstration of the decrease in money transfers into the country visible from the beginning of the year.
The major reason for this decrease is the economic crisis in countries in which emigrants from Georgia work. Traditionally the biggest currency inflow was from Russia, to which many Georgians have emigrated, but due to the devaluation of the Rouble and the financial crisis many ethnic Georgians have lost their jobs. Economic analyst Soso Archvadze predicts a further decrease of transfers into the country in 2009-2010, in particular from Russia.
High unemployment has created a situation in Georgia in which many people live on the extra earnings of close relatives working outside the country. This has had both economic and social impacts. The decrease of currency inflow will make the already hard situation even more difficult, thinks economic analyst Davit Narmania. In 2008 Georgia received more than USD 1 billion in money transfers, the highest rate ever.