Georgia’s Remittance Landscape in January 2024
In January 2024, remittance inflows from Russia to Georgia declined sharply, dropping by almost three quarters from the previous year and totaling 67.7 million dollars. This trend was reported by the Georgia National Bank and subsequently highlighted by Kommersant, signaling a notable shift in cross-border money movements at the start of the year.
Despite the steep fall, Russia remained the leading source of funds for Georgia. Italy followed with 44.2 million dollars, and the United States ranked third with 38 million dollars, underscoring a diverse mix of origins behind Georgia’s cross-border transfers as 2024 began.
Looking at the wider picture, total cross-border transfers into Georgia for January dropped 40.8 percent year over year, totaling 263.4 million dollars. Russia accounted for about a quarter of all transfers, representing 25.4 percent of the total. This enduring share demonstrates the persistent influence of Russian remittances even amid the downturn.
Industry observers tie the large contraction in Russian remittances to a broader migration wave, with many Russians relocating to Georgia following the early months of the Ukraine conflict. In 2022, Georgia saw significant mobility, with 1.856 million Russian citizens entering the country and 1.887 million leaving, illustrating the dynamic movement that shaped financial exchanges during that period. Those mobility patterns have left a lasting imprint on remittance flows and the make-up of inbound transfers to Georgia.
Toward year-end, discussions emerged about regulatory steps from Rosfinmonitoring aimed at organizing and potentially limiting certain online banking activities. The evolving regulatory environment has implications for how cross-border payments are processed and monitored, shaping behavior for both senders and receivers in Georgia and nearby markets.
In related developments, the Central Bank has noted growing use of the SBP system, signaling a shift in how residents access and use payment infrastructures for international transfers. This evolving landscape highlights the importance of watching regulatory changes, financial technology adoption, and the broader geopolitical context that shapes remittance flows into Georgia. The ongoing dialogue among authorities, financial institutions, and consumers continues to influence practical access, speed, and cost of sending money across borders, with direct implications for households relying on these funds.