Tajikistan: Remittances Take a Big Hit

Remittances to Tajikistan fell in value by nearly a third during the first quarter of 2009, the head of the National Bank has revealed. The decline in the value in the Russia ruble is the main reason for the decline, the bank chief added.

The drop potentially spells disaster for the impoverished state, as half of its economically active male population is believed to be working abroad. According to some estimates, remittances are responsible for generating up to 40 percent of Tajikistan's gross domestic product.

"During the first three month [of 2009], migrants remitted home 7.9 billion rubles, which is 1.7 percent more than [the same period] in 2008. [But in dollar terms], remittances from migrant workers [during the first quarter of 2009] decreased by 29.5 percent as compared to the first quarter of 2008 to $233.3 million."," said Sharif Rahimzoda, the head of the National Bank of Tajikistan.

During the first three months of 2008, remittances were valued at $331 million, the Russian news agency Interfax reported April 23. The ruble has lost 35 percent of its value against the dollar over the past six months.