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Volume of remittance from Kazakhstan to Azerbaijan decreases

16 April 2024 08:30 (UTC+04:00)
Volume of remittance from Kazakhstan to Azerbaijan decreases
Ulviyya Shahin
Ulviyya Shahin
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Last year, money transfers from Kazakhstan to Azerbaijan decreased by 7%, Azernews reports, citing the Central Bank of Azerbaijan.

In 2023, physical persons from Kazakhstan sent $30,583,000 to Azerbaijan.

This is 6.9% (or $2,275,000) less compared to 2022. In 2022, the volume of money transfers amounted to $32,858,000.

It should be noted that the total share of money transfers from individuals in Kazakhstan to Azerbaijan last year was 1.8%.

The decrease in money transfers from Kazakhstan to Azerbaijan observed last year reflects a notable shift in the financial interactions between the two countries. Several factors contribute to this decline, including economic fluctuations, changes in migration patterns, and evolving geopolitical dynamics.

Throughout recent years, the relationship between Kazakhstan and Azerbaijan has been characterised by significant economic ties, with money transfers serving as a vital component of cross-border financial activities. These transfers often play a crucial role in supporting families, facilitating trade, and contributing to the overall economic stability of both nations.

However, the decrease in money transfers in 2023 signals a departure from the previously observed trend. Economic factors such as fluctuations in currency exchange rates, variations in employment opportunities, and changes in living standards may have influenced individuals' ability and willingness to transfer funds across borders.

Moreover, shifts in migration patterns could also contribute to the decline in money transfers. Changes in labour demand, visa regulations, and political developments may impact the mobility of individuals between Kazakhstan and Azerbaijan, consequently affecting the flow of remittances.

Geopolitical dynamics may also play a role in shaping financial interactions between the two countries. Regional tensions, diplomatic relations, and international sanctions can influence individuals' confidence in cross-border transactions, potentially leading to a decrease in money transfers.

The report by Azernews, with reference to data from the Central Bank of Azerbaijan, sheds light on the magnitude of this decrease. The 6.9% reduction in money transfers compared to the previous year highlights the significance of this trend. Despite the decline, it's essential to recognise that money transfers from individuals in Kazakhstan still constitute a notable portion of Azerbaijan's financial inflows, underscoring the enduring ties between the two nations.

The analysis provided contextualises the observed decrease in money transfers from Kazakhstan to Azerbaijan, offering insights into the multifaceted factors influencing cross-border financial activities between the two countries.

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