Kazakhstan and Georgia relate in many ways. It is evident through the shared trans-national infrastructure and the Trans-Caspian International Transport Route, also known as the Middle Corridor, which starts from Southeast Asia and China, runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to European countries. Objective financial data, such as trade, tourism, and remittance, illustrate the relations between the two countries even better.
Trade
According to the National Statistics Office of Georgia, the trade turnover between Georgia and Kazakhstan amounted to roughly $233 million in January-November 2022 – the highest amount since 2009 and twice more than last year. Interestingly, the trade balance skews towards exports by around 85%, while motor cars, cigarettes, other tobacco products, and water are leading the list. As for imports, flat-rolled products of non-alloy steel is the most demanded commodity.
Tourism
Historically, Georgia is one of the most demanded locations for Kazakhstani tourists. According to the Georgian National Tourism Administration, roughly 115 thousand Kazakhstanis visited Georgia in January-November 2022, which puts the Central Asian nation in the top 10 countries by international visitor trips. There has been a spike in interest in recent years, too. There has been a 20% increase in numbers in 2022 compared to pre-pandemic 2019.
Remittances
Remittances, for sure, are among the most crucial markers indicating the relations between Georgia and Kazakhstan, as they represent not only the direct economic links but also the social ties existing between nations. According to the National Bank of Georgia, since May 2021, remittances received from and sent to Kazakhstan have increased. Interestingly 2022 was a historic year as $148 million was exchanged between the states from January through November. It is almost twice as much as in 2021.
There are many reasons why remittances sent from Georgia to Kazakhstan and received in Georgia from Kazakhstan have been increasing: in recent years, the ties between the two states have deepened, with more Georgian companies, sole proprietors, and workers present on the Kazakhstani market. Yet, the picture is incomplete, as the influx of Russian-speaking ex-pats and digital nomads to Georgia caused by the Russian war in Ukraine plays a role, too. In any case, there is demand for the distribution of remittances between the residents of the two countries.
How to Transfer Money from Georgia to Kazakhstan?
Traditionally, there are two main ways to transfer money between countries. First, through banks via the SWIFT messaging network. Second, through money-transferring entities, such as Western Union or MoneyGram. Let us now focus on each of them separately.
For Georgian commercial banks operating through SWIFT – in this case, Bank of Georgia and TBC – the usual commissions are fixed at $15 and 0.2%, the same for transfers in euros. Kazakhstani Halyk Bank, on the other hand, operating in Georgia, offers a fixed €8 commission for transfers in euro and 0.2% commission ranging from $15 to $150 for transfers in US Dollars. Interbank transactions, however, require from three to five working days.
If this timeframe is too long, there are alternatives, such as money-transferring entities. For most such businesses, the commission ranges between one and two percent. There are outliners, too. Typically, such transfers are faster than those done through SWIFT, as they could be received the same day.
Transfer Money from Georgia to Kazakhstan in Crypto
With the swift development of blockchain technologies and cryptocurrencies, money transfer between countries has become easier and faster. Cryptocurrency, per se, is a form of digital money used for numeric valuation, as a means of exchange, as a store of value, and as a source of liquidity. What makes cryptocurrencies appealing to the public – is the blockchain-enabled protection through cryptographic means.
To transfer cryptocurrencies, interested parties could employ the services of illegal exchangers and peer-to-peer (p2p) transactions, and a crypto exchange. While the commission for the former two is typically substantially lower or, in some cases, non-existent, there are drawbacks. Given that illegal exchangers and individual parties willing to trade cryptocurrencies, as a rule, are not regulated, transactions are high-risk.
There is an alternative, however – exchanging money through legal and established crypto exchanges. The typical process is straightforward: everything one needs is an app and the recipient’s wallet address. For Kazakhstanis residing in Georgian or Georgians interested in transferring funds to Kazakhstan, ATAIX Eurasia – the first crypto exchange in Kazakhstan licensed as a part of the AIFC Fintech Lab Pilot project, could serve as the most suitable and safe crypto exchange. ATAIX Eurasia offers instant exchange of all cryptocurrencies available on the platform, secure and unlimited transactions, a simple and user-friendly interface, and a multicurrency crypto wallet. Interestingly, ATAIX Eurasia works with individuals and professional market participants, for example, miners.
Here is the breakdown of the commission structure for ATAIX Eurasia:
- Replenishment of the balance through the bank is free of commission while replenishing the balance from Mastercard and Visa has a commission of 3.5%. Withdrawals through Mastercard and Visa cards are also available with a 1% fee.
- The transfer fee in USDT on ATAIX Eurasia is 1.5 USDT regardless of the amount.
ATAIX Eurasia is the first licensed crypto exchange in Kazakhstan, which operates based on licenses of the Astana International Financial Centre (AIFC). Its parent company – ATAIX, has been licensed by the European Union and regulates according to EU laws. The license allows ATAIX Eurasia to open accounts in Kazakhstani banks, which greatly simplifies, speeds up, and reduces the cost of depositing and withdrawing funds for users. In the future, ATAIX Eurasia plans to enter the Georgian market. S
Leave a comment
