Remittances are defined as the money sent by the immigrants who have been working in a foreign country for more than a year to their families in their homeland. They are one of the major capital resources of developing countries. The volume of remittances which are divided into two components as “compensation for employees and personal savings” in the IMF Balance of Payments and International Investment Position Manual (BPM6) has seen a considerable increase since the 2000s. Remittances are considered to be a reliable source particularly for countries with a chronic foreign deficit as they have a more stable structure compared to foreign direct investment, foreign borrowing or foreign aid, and thus countries may use remittances to finance deficits. According to the 2015 World Bank data, approximately 75 percent of about $600 billion of remittances worldwide flows into developing countries. The countries receiving the highest amount of remittance are India, China, Philippines, and Mexico. However, small and poor countries like Kyrgyzstan, Nepal, Tajikistan and Moldova are in the first place when the share of remittances within GDP is taken into account. This study examines the effect of remittances on balance of foreign trade using advanced panel data methods and thus aims to contribute to the relevant literature empirically. Within the scope of the study, the effect of remittances on the financing of foreign trade deficit was explored using the data for six-member countries of the Commonwealth of Independent States for the 2002-2016 period. The time period and countries selection were determined by considering the availability and accessibility of data. To this end, first, the presence of cross-sectional dependence among the countries in the panel was investigated and the analysis asserted cross-sectional independence among the countries in the panel. Based on this finding, first generation methods were used in the stationarity analysis of variables and long-run coefficient estimation. Long-run coefficients obtained through Pesaran, Shin and Smith (1999) PMG (Pooled Mean Group) estimator showed that remittances are a significant variable that affects balance of foreign trade positively in Azerbaijan and negatively in Moldova and Tajikistan.