BAKU, Azerbaijan, Dec. 8
By Klavdiya Romakayeva - Trend:
The population of Uzbekistan began to use banking services more often during the pandemic, Trend reports with reference to the Central Bank of Uzbekistan (CBU).
According to the CBU, the pandemic had a significant impact on the volume of remittances between countries. In particular, in the second quarter of 2020, remittances from Russia to Central Asia, Eastern Europe, and the Caucasus decreased by 29 percent compared to the same period last year (during the global financial crisis of 2008-2009, this figure fell to 35 percent).
In turn, remittances to Uzbekistan decreased significantly from March through April. Their volume began to increase in May, approaching the indicators of 2019 in the period from August through September.
The volume of remittances for 9M2020 amounted to $4.3 billion, which is four percent less compared to the same period last year.
“The absence of a sharp decline in remittances is explained by the fact that in the period before the pandemic, a certain part of remittances came informally (in cash), bypassing the banking system. Since the introduction of quarantine restrictions and the impossibility of moving between countries, the previously unaccounted for part of remittances began to pass through the banking system,” the CBU said.
According to a survey conducted by the CBU among labor migrants, 85 percent of respondents said that they send money to the country through the banking system through money transfers, the remaining 15 percent - in cash or other ways.
The Central Bank expects that if this trend continues by the end of 2020, the volume of cash remittances will decrease by 6-7 percent compared to the previous year.
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