The cross-border money transfers from Kazakhstan totalled $147.3mn, showing a 16.6% decline compared to June 2023, according to the National Bank of Kazakhstan. Uzbekistan remained the primary destination, receiving $60.4mn, which accounts for 39.3% of the total transfers, an 8% decrease from June 2023.

Other key destinations for money transfers included Russia, which received $41.2mn (26.9%), Turkey with $22.3mn (14.5%), Georgia with $10.3mn (6.7%), and Kyrgyzstan with $5.4mn (3.6%).

Compared to May, the total amount of money transfers in June decreased by 1.1%. Despite this overall decline, Uzbekistan’s share of the total increased to 39.3% in June, up from 27.4% in May, reflecting a 7.7% increase.

Kazakhstan reported a 27.4% y/y decrease in incoming money transfers, totalling $134.2mn in June 2024. This represents a 14.1% decline compared to May. Leading sources of inbound transfers were Russia with $11.1mn (27.6%), the U.S. with $5.4mn (13.6%), and South Korea with $4.8mn (11.9%). Uzbekistan and Turkey followed, holding shares of 10% and 7.9%, respectively.

The increase in money transfers from Russia began in the spring of 2022 after Western sanctions were imposed on Russian banks, and Visa and Mastercard ceased operations in Russia. Many Russians subsequently opened accounts in Kazakhstani banks and utilized money transfer systems that did not require an account. In February 2022, Russia accounted for 12.4% of transfers to Kazakhstan, which increased to 17.8% by March, positioning Russia as the leading sender. In absolute figures, these transactions doubled, reaching $9.6mn.

The Russian KoronaPay system remains the most popular for money transfers in Kazakhstan, holding a 90% market share. In June 2024, KoronaPay handled $13.8mn in transfers, a 5.2% decline y/y and a 1.1% decrease m/m.