August 17, 2024 | 12:00am
Highest in 6 months
MANILA, Philippines — Dollar earnings sent home by overseas Filipino workers (OFWs) increased by 2.5 percent in June, the highest in six months, according to the Bangko Sentral ng Pilipinas.
BSP data showed personal remittances went up by 2.5 percent to $3.21 billion in June from $3.13 billion in the same month a year ago. The amount was the highest since the $3.63 billion in December 2023.
“The increase in personal remittances in June was due to higher remittances sent by land-based workers with work contracts of one year or more, and sea- and land-based workers with work contracts of less than one year,” the BSP said.
This brought total personal remittances to $18.1 billion in the first half, 2.9 percent higher than the $17.59 billion recorded in the same period a year ago.
Cash remittances coursed through banks grew by 2.9 percent to $16.25 billion in the first half from $15.70 billion a year ago.
For June alone, cash remittances rose by 2.5 percent to $2.88 billion from $2.81 billion a year ago, driven by the growth in receipts from land- and sea-based workers.
It also marked the highest level in six months or since the $3.28 billion in December 2023.
According to the BSP, the growth in cash remittances from the United States, Saudi Arabia and Singapore contributed mainly to the increase in remittances in the first half.
In terms of country sources, the US posted the highest share of overall remittances during the period with 40.9 percent, followed by Singapore (6.9 percent), Saudi Arabia (six percent), Japan (five percent) and the United Kingdom (five percent).
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said OFWs sent more money home to help their families with holiday-related spending during school vacation and tuition payments.
Other school-related expenses that are compulsory may continue to drive up remittances until early August, Ricafort said.
In the coming months, he said OFWs may continue to send more money home as dependents still need to cope with higher prices of goods and services in the country.
However, risks of economic slowdown in the US and other countries may create a drag on remittances this year, especially if there will be job losses for some OFWs.
BSP Governor Eli Remolona Jr. earlier said the Philippines has sufficient dollar inflows to maintain an ample level of gross international reserves, which is the country’s defense against external shocks.
“The biggest inflows are from remittances and then business process outsourcing. (These inflows) are increasing,” he said. “We expect our inflows to rise even further next year and continue to contribute to building up our reserves.”
The BSP sees both personal and cash remittances increasing by three percent this year.
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