Private remittances to Ukraine reached historical high in 1Q18, NBU reports

Private remittances to Ukraine increased 34.2% yoy in
1Q18, reaching USD 2.6 bln, or 10.2% of GDP, the National Bank of Ukraine (NBU)
reported on July 2. This is a historical high since the current statistics
began in 2008, while the previous high was 9.1% of GDP in 2Q17, the NBU said.

The highest share of remittances – USD 1.3 bln – came
to the country via informal channels, while USD 578 mln were wired via
international transfer systems and USD 761 mln via banking system, the NBU
said.

The most originated from Poland, Russia and the U.S.,
the NBU said. In 1Q18, remittances from Poland surged 44.9% yoy to USD 865 mln,
while money transfers from Russia declined 8.3% yoy to USD 300 mln. Remittances
from the U.S. increased 29.7% to USD 192 mln.

Evgeniya Akhtyrko: Recall, the
improved methodology for estimating remittances to Ukraine prompted the
National Bank to revise upward the current account balance
for 2015-17. A strong continuing inflow of remittances is providing significant
support for Ukraine’s balance of payments amid a trade deficit and weak currency inflow under the financial
account. It also reduces devaluation pressure on the national
currency.