Data on the amounts that passed through Moldovan banks in May are published by the National Bank of Moldova (NBM). A high inflow of foreign currency ensures a stable supply in the domestic foreign exchange market, which helps the central bank smooth out fluctuations in the national currency’s exchange rate. Remittances from individuals directly translate into the population’s purchasing power, stimulating domestic trade and retail sales.
The trend in remittances from abroad to Moldova shows a recovery in volumes following a protracted two-year decline. For two consecutive years, total net remittance figures declined steadily. This was caused by a drop in remittances from CIS countries and high inflation in the European Union.
This season, May figures of $170 million reinforced the overall upward trend that began in the first quarter, when the year-over-year growth in total remittances exceeded 10%, according to the National Bank of Moldova (NBM).
Despite the recovery in nominal dollar amounts, the share of remittances in the economy has adjusted. Currently, they account for about 8% of GDP, whereas previously this figure had reached 11%.
Israel remains the main source of net remittances.
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