IOM Azerbaijan held a Closing Ceremony of the project “Enhancing the Socioeconomic Benefits of Remittances in Azerbaijan”

Remittances generated from migration play a critical role in economic development with global remittance flows expected to reach USD 840 billion in 2023. For Azerbaijan, more than one million Azerbaijanis live outside of the country, many of them working and providing financial support to their families by sending remittances from abroad. The socioeconomic benefits of remittances sent to and from Azerbaijan are impacted by the existing remittance service infrastructure and financial behavior patterns of both remittance senders and remittance recipients. In light of this, digitalization of payment services, including remittance-related services, was the focus of the program to seek contribute towards greater financial inclusion, higher financial literacy, and ultimately encourage savings- and investment-oriented financial behavior. 

The event was attended by the representatives of the International Organization for Migration (IOM), State Migration Service (SMS), representatives of the Central bank and other government stakeholders, as well as representatives of the private sector, NGOs and international organizations. 

The opening statements were delivered by Mr. Mahammad Ibrahimov, project assistant (IOM) and Mr. Vahid Gahramanov, Chief of Head Department (SMS).

Mr. Mahammad Ibrahimov presented a summary of the project findings supported by a site visit to the financial sector in Azerbaijan as a demonstration on the importance of developing awareness of digital money transfer to enhance the economic benefits of remittances. 

To further support the project objectives, IOM’s MigApp was utilized to provide migrants detailed information to send remittances from/to Azerbaijan from 10 major remittance countries. The application improves accessibility of information, contributes to digital financial literacy, and supports migrants and their families to make key and informed decisions on the most cost-effective mechanisms to send/receive remittances.

In addition, it is important to note that within the framework of the project, an analysis of the situation related to digital money transfers in Azerbaijan was carried out, on the basis of which 29 recommendations were identified to improve the availability and implementation of digital money transfer services and other related financial products. These recommendations were included in the draft Financial Inclusion Strategy developed by the Central Bank and will be included into the Concept of the Strategy for the Integration of Migrants, to be prepared by the State Migration Service. 

Key stakeholders of the project include: State Migration Service, State Committee for Work with the Diaspora, Central Bank. Financial Monitoring Service and Azerbaijan Banks Association.

The factor of remittances plays an important role in development and remains a critical financial lifeline for households receiving them. To support these measures, digital infrastructure, sound legal framework, an appropriate financial system and comprehensive remittance policies, including efficient and low-cost transfers are important aspects to support the development gains of migration. 

For more information, please contact IOM Azerbaijan iomazerbaijan@iom.int