In May 2023, the total amount sent from Russia to Kazakhstan, Georgia, Armenia, and Kyrgyzstan fell by about one third year over year, according to the agency that monitors these flows. This marks the first noticeable decline since March 2022, when transfers surged amid Russian emigration and the growth of card-based travel between the countries.
The agency reported that $625.9 million was remitted to the four nations in May 2023, a 33% drop from May 2022. May’s total also slipped relative to April 2023, which saw transfers totaling $650.4 million. This sequence indicates that the volume of cross-border payments from Russia to these destinations has cooled after a period of rapid growth.
Observers note that the year-over-year contraction in May 2023 follows a peak in October 2022 when transfers reached about $1.1 billion. The pattern over the past 13 months shows a reversal from the earlier surge, with a clear deceleration setting in after the late-2022 peak. Market analysts point to a combination of shifting economic conditions, evolving consumer behavior, and regulatory factors as contributors to the changing remittance landscape.
In separate policy developments, there were discussions about banks’ access to government data to better serve customers in need. The idea is to enable financial institutions to verify financial status through official portals, with the aim of offering social deposits at rates that could exceed standard terms for low-income households seeking support. This potential shift reflects ongoing efforts to balance financial inclusion with prudent supervision.
Nationwide policy dialogue also touched on the possibility of adjustments to key policy rates by the central bank. Any changes would influence lending, savings, and the broader flow of capital across the region, including cross-border remittances. As markets respond, banks and households alike will watch closely how these actions might shape cash flows and financial planning in the months ahead.