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In 2020 Domestic Fund Transfers Rise by Almost a Quarter

In 2020 Domestic Fund Transfers Rise by Almost a Quarter

In 2020, UAH 255.2 billion (the equivalent of USD 9,489.6 million) in Ukrainian domestic transfers was transacted via the money transfer systems*

The amount of domestic transfers transacted via the money transfer systems in 2020 increased by almost a quarter (23,6%) compared with 2019. The amount of domestic transfers has trended higher over the past few years. Overall, fund transfers within Ukraine grow annually: in 2017 – by 21.4%, in 2018 – by 24.3%, in 2019 – by 38.6%.

In 2020, the average amount of a transfer within Ukraine was UAH 364 (up from UAH 314 in 2019).  Traditionally, Kyiv received most of the transfers. 

Over 78% of remittances within Ukraine were transacted by the three leading national systems: NovaPay (NovaPay LLC payment system operator), Poshtovyi perekaz (Ukrposhta PJSC payment system operator), and Finansovyi svit (Ukrainska platizhna systema LLC payment system operator). 

A fifth of all private remittances to Ukraine were sent via the money transfer systems 

The money transfer systems* transacted the following: 

  • into Ukraine – USD 2,697.4 million in the USD equivalent. That was nearly 19% more than in 2019. The amount of transfers sent into Ukraine via the money transfer systems rose for the first time in four years.  The average amount of a transfer into Ukraine increased somewhat, from USD 366 to USD 393 (by 7.4%). 
  • from Ukraine – USD 556.2 million in the USD equivalent. The amount grew by nearly 40% compared with 2019.  The average amount of a transfer from Ukraine also increased: USD 519 vs USD 402 in 2019. 

Ukraine remains a net recipient of cross-border transfers. At the same time, the ratio between the amounts received in Ukraine and sent abroad via the international money transfer systems has decreased from 8.3 to 4.8 times over the last four years. 

The three leading countries that sent most funds to Ukraine via the money transfer systems are the U.S., Italy, and Israel. Most money transfers from Ukraine were sent to Russia, Georgia, and Azerbaijan. 

In terms of regions, most funds were sent:

  • from abroad to Kyiv, Dnipropetrovsk oblast, and Lviv oblast
  • abroad from Kyiv, Dnipropetrovsk oblast, and Odesa oblast. 

Overall, according to the preliminary NBU estimates, in 2020, the following amounts of private remittances were transacted through official and informal channels: 

  • into Ukraine from abroad – USD 12,121 million in the equivalent (roughly one fifth of them were sent via the money transfer systems) 
  • abroad from Ukraine – USD 842 million in the equivalent (almost two thirds of them were sent via the money transfer systems).

Please be reminded that in late March this year, the NBU will publish its detailed data on private remittances calculated under the balance of payments for 2020. This data, i.e. the income of households received from other households from abroad, is associated with temporary or permanent migration. Transfers may be transacted through official channels such as banks, international money transfer systems, and post offices, as well as through unofficial ones by handing over cash and other valuables from one household to another. 

For reference

In 2020, 37 money transfer systems provided services in Ukraine, 30 whereof were established by residents and 7 by nonresidents (4 US systems and 1 from Georgia, Canada and Azerbaijan each).

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* excluding remittances transacted to bank accounts via card payment systems or post offices, or through informal channels.

 

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