Ukraine labor remittances reach USD 6 bln in 7M18

The remittances of Ukrainian laborers abroad reached
USD 6.35 bln in 7M18, National Bank of Ukraine (NBU) Governor Yakiv Smoliy said
on Sept. 7, the Interfax-Ukraine agency reported. Remittances will reach USD
11.0 bln in 2018, according to NBU estimates.

Evgeniya Akhtyrko: The remittances of labor migrants are essential for Ukraine as they
restrain the enlargement of the current account (C/A) deficit amid a negative
trade balance. Recall, the C/A deficit reached USD 1.1 bln in July and USD
1.7 bln in 7M18.
Avoiding excess enlargement of the C/A deficit is important, given Ukraine’s
weak prospects to secure strong foreign currency inflow under its financial
account. Given Ukraine’s already low gross international reserves, a negative balance of payments is not a viable
option as low availability of foreign currency will trigger further
devaluation.