{"id":448424,"date":"2020-06-25T19:05:10","date_gmt":"2020-06-25T19:05:10","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=448424"},"modified":"2020-07-07T18:40:54","modified_gmt":"2020-07-07T18:40:54","slug":"record-remittances-sent-to-moldova-during-the-covid-19-pandemic-experts-explanations","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/record-remittances-sent-to-moldova-during-the-covid-19-pandemic-experts-explanations\/","title":{"rendered":"Record remittances sent to Moldova during the COVID-19 pandemic – expert’s explanation"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

The remittances sent by Moldovans from abroad reached a record level in May 2020. The last time there was a larger amount of money transferred from abroad was only in October 2014.<\/p>\n

The economic policy expert Veaceslav Ioni\u021b\u0103<\/strong> believes that the significant increase is, paradoxically, due to the COVID-19 pandemic. According to his estimations, during the period of April-May, when there were quarantine and closed borders, Moldovan citizens could not bring into the country around $150 million. Part of this money were transferred through official transfer systems<\/span>, that reducing the amount of unofficial transfers, is noted in the opinion published<\/a> on the page of the Institute for Development and Social Initiatives (IDSI) “Viitorul”.<\/strong><\/p>\n

According to the expert, one third of all money from abroad are usually transferred to Moldova through informal ways, without using any official money transfer channels. “Each year, Moldovans receive almost $1.2 billion through official transfers, but also they sell on the foreign exchange market about $2.1 billion. The difference of 900 million dollars per year is the money that is introduced into the country through informal ways,”<\/em> said the expert.<\/p>\n

The total recorded transfers between April to May amounted $227 million, that being $14 million more than in 2019. At the same time, the foreign\u00a0exchange sales during this period represented only 50% of the last year’s amount – $259 million.\u00a0“April and May 2020 were the only two months in the history of transfers, when the money came almost exclusively through official channels. This explains this ‘miraculous’ growth,”<\/em> concluded Veaceslav Ioni\u021b\u0103.<\/p>\n

The number of Moldovan citizens aged 15 and over who were working or were looking for a job abroad was 352 700<\/strong>\u00a0in 2018, according to the National Bureau of Statistics (NBS) data<\/a>. That represented\u00a035,68%<\/strong> of the total available workforce<\/a> of the country in the same year.<\/p>\n

People living in the Republic of Moldova,\u00a0along with the whole economy of the country, are greatly dependant on the\u00a0remittances sent by Moldovan citizens who live abroad. About 20%\u00a0of all families with children in Moldova are supported by a family member<\/span> who is a migrant. The concentration of such families in rural areas is three times higher than in urban areas, according to data from the NBS cited<\/a> by the UNDP Moldova.<\/p>\n

This money represent not only an important source of income for people living in Moldova, but also contribute to the increase of GDP\u00a0nominal value.\u00a0In 2018, the Republic of Moldova has been listed the 9th in a world ranking of remittances related to GDP, with a share of 16,1%<\/strong>, according to the World Bank\u00a0data<\/a>.<\/p>\n

See also:\u00a0Who? How? Where? Why? The migration profile of the Republic of Moldova<\/a><\/span><\/p>\n

Due to the negative impact of COVID-19, remittances sent to Moldova are expected to decrease by 24-27% in the future<\/span>, informed the UNDP Moldova. Decreasing remittance flows were predicted<\/a> by the World Bank in the whole world. It was estimated<\/a> that about 17% of all migrants have already stopped remitting to their families. In such a way, 23,4%<\/strong> of Moldovan households risk to be placed below the poverty line if they did not receive remittances.<\/p>\n

Photo:\u00a0Sharon McCutcheon<\/a>|\u00a0Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>The remittances sent by Moldovans from abroad reached a record level in May 2020. The last time there was a larger amount of money transferred from abroad was only in October 2014. The economic policy expert Veaceslav Ioni\u021b\u0103 believes that the significant increase is, paradoxically, due to the COVID-19 pandemic. According to his estimations, during […]<\/p>\n","protected":false},"author":31,"featured_media":448425,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,12,4],"tags":[642,297,35,776,26,27,778,777,124],"class_list":["post-448424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diaspora-en","category-important-en","category-opinion","category-society","tag-covid-19","tag-expert","tag-important","tag-migrants","tag-migration","tag-moldova","tag-money-transfer","tag-remittances","tag-report"],"content_social_share":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

The remittances sent by Moldovans from abroad reached a record level in May 2020. The last time there was a larger amount of money transferred from abroad was only in October 2014.<\/p>\n

The economic policy expert Veaceslav Ioni\u021b\u0103<\/strong> believes that the significant increase is, paradoxically, due to the COVID-19 pandemic. According to his estimations, during the period of April-May, when there were quarantine and closed borders, Moldovan citizens could not bring into the country around $150 million. Part of this money were transferred through official transfer systems<\/span>, that reducing the amount of unofficial transfers, is noted in the opinion published<\/a> on the page of the Institute for Development and Social Initiatives (IDSI) “Viitorul”.<\/strong><\/p>\n

According to the expert, one third of all money from abroad are usually transferred to Moldova through informal ways, without using any official money transfer channels. “Each year, Moldovans receive almost $1.2 billion through official transfers, but also they sell on the foreign exchange market about $2.1 billion. The difference of 900 million dollars per year is the money that is introduced into the country through informal ways,”<\/em> said the expert.<\/p>\n

The total recorded transfers between April to May amounted $227 million, that being $14 million more than in 2019. At the same time, the foreign\u00a0exchange sales during this period represented only 50% of the last year’s amount – $259 million.\u00a0“April and May 2020 were the only two months in the history of transfers, when the money came almost exclusively through official channels. This explains this ‘miraculous’ growth,”<\/em> concluded Veaceslav Ioni\u021b\u0103.<\/p>\n

The number of Moldovan citizens aged 15 and over who were working or were looking for a job abroad was 352 700<\/strong>\u00a0in 2018, according to the National Bureau of Statistics (NBS) data<\/a>. That represented\u00a035,68%<\/strong> of the total available workforce<\/a> of the country in the same year.<\/p>\n

People living in the Republic of Moldova,\u00a0along with the whole economy of the country, are greatly dependant on the\u00a0remittances sent by Moldovan citizens who live abroad. About 20%\u00a0of all families with children in Moldova are supported by a family member<\/span> who is a migrant. The concentration of such families in rural areas is three times higher than in urban areas, according to data from the NBS cited<\/a> by the UNDP Moldova.<\/p>\n

This money represent not only an important source of income for people living in Moldova, but also contribute to the increase of GDP\u00a0nominal value.\u00a0In 2018, the Republic of Moldova has been listed the 9th in a world ranking of remittances related to GDP, with a share of 16,1%<\/strong>, according to the World Bank\u00a0data<\/a>.<\/p>\n

See also:\u00a0Who? How? Where? Why? The migration profile of the Republic of Moldova<\/a><\/span><\/p>\n

Due to the negative impact of COVID-19, remittances sent to Moldova are expected to decrease by 24-27% in the future<\/span>, informed the UNDP Moldova. Decreasing remittance flows were predicted<\/a> by the World Bank in the whole world. It was estimated<\/a> that about 17% of all migrants have already stopped remitting to their families. In such a way, 23,4%<\/strong> of Moldovan households risk to be placed below the poverty line if they did not receive remittances.<\/p>\n

Photo:\u00a0Sharon McCutcheon<\/a>|\u00a0Unsplash<\/a><\/p>\n

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