Uzbekistan has emerged as a frontrunner in cross-border transfers facilitated through the VTB Online application, as per to the Russian bank VTB, TASS reported. Over the past eight months, VTB Bank customers have executed more than 140,000 foreign transfers valued at 21 bn rubles ($218 mn), marking a significant surge in cross-border financial transactions, especially with neighboring countries.
Rapid growth in cross-border transfers
VTB Bank witnessed a substantial increase in cross-border transactions over the summer. Approximately 75,000 operations, amounting to 6.5 bn rubles ($67.4 mn), were conducted with neighboring countries during this period. This surge represents a six-fold increase compared to the same period last year.
Previously, Tajikistan held the title for the highest number of transactions in cross-border transfers. However, Uzbekistan surged ahead in this sector since the latter half of the previous month. The credit institution attributed this shift to the expansion of transfer capabilities to Uzbekistan.
VTB's expanding cross-border services
VTB Bank has extended its cross-border transfer services to a growing list of countries, including Azerbaijan, Armenia, Belarus, Vietnam, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and more. The bank has ambitious plans to further broaden its international reach, with the goal of expanding to 30 countries and areas for cross-border operations by the end of the year.
While Uzbekistan has experienced significant growth in cross-border transactions, the overall volume of money transfers to the country declined during the first half of the year. According to data, money transfers to Uzbekistan totaled $5.2 bn in the first half of the year, reflecting a 21.2% decrease compared to the same period in the previous year.
Earlier Daryo reported that Uzbekistan's remittances surged, with cross-border transfers reaching $16.9 bn in 2022, doubling from the previous year and accounting for 21% of GDP. In the first four months of 2023, transfers increased by 21% to $3.1 bn, mainly from Russia. Economists predict a 1% growth in remittances in Europe and Central Asia in 2023. While most countries are normalizing cross-border flows, Armenia, Georgia, Kyrgyzstan, and Uzbekistan expect higher transfer volumes in 2024. Uzbek migrants to Russia increased by 72% in Q1 2023, totaling 630,000 people, making Uzbekistan the main source of labor migrants in Russia, with 1.45 mn arrivals in 2022, constituting 42% of foreign workers.
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