Money Transfers to Ukraine: National Bank Reports Significant Decline and 2024 Trends
In the first five months of 2024, the total volume of monetary transfers to Ukraine amounted to approximately 3.5 billion USD, reflecting a notable decrease compared to the same period last year. According to data from the National Bank of Ukraine (NBU), the volume of remittances dropped by 15.4% compared to January-May 2023, marking one of the poorest performances in recent years. The largest decline was observed in remittances related to wages and income—down by 18.7%, from 2.3 billion USD last year to 1.87 billion USD this year. Overall, official channels delivered 2 billion USD to Ukraine during this period, while unofficial channels accounted for another 1.46 billion USD. In May 2024, transfers amounted to 711 million USD, which is lower than in May last year when the sums reached 819 million USD, and in May 2023—953 million USD. Analyzing this trend, it can be concluded that economic challenges and internal political situations significantly influence the reduction in remittances. Additionally, it is worth noting that one of the key factors impacting the exchange rate situation is the strengthening of the euro relative to the hryvnia. This is associated with the weakening of the US dollar globally, driven by internal and external political processes, particularly US policies after Donald Trump’s election as U.S. President.