BSP sees OFW inflows picking up in late 2011

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) sees a further increase in remittances from overseas Filipino workers (OFWs).

BSP Deputy Governor Diwa Guinigundo said in an interview with reporters that it is still early to tell whether remittances from overseas Filipino workers (OFWs) have already peaked last October. “We can not say that, November and December may continue to show some pickup,” Guinigundo said.

The Bangko Sentral ng Pilipinas (BSP) sees a further increase in remittances from overseas Filipino workers (OFWs).

BSP Deputy Governor Diwa Guinigundo said in an interview with reporters that it is still early to tell whether remittances from overseas Filipino workers (OFWs) have already peaked last October. “We can not say that, November and December may continue to show some pickup,” Guinigundo said.

OFW remittances climbed 6.2 percent to hit a new monthly record of $1.78 billion in October, erasing the previous record of $1.737 billion booked last June. In all, OFW remittances went up by seven percent to $16.534 billion in the first 10 months of the year from $15.456 billion in the same period last year.

The BSP said that the higher level of remittances in October could also be due to higher cash transfers by Filipinos abroad to their beneficiaries who were affected by typhoons Quiel and Pedring last September.

Guinigundo explained that remittances could pick up in the coming months as OFWs abroad are likely to send more money to their loved ones especially those affected by typhoon Sendong that claimed the lives of more than 1,000 Filipinos and rendered thousands of families in Mindanao homeless.

“Normally if there is a calamity, OFWs will try to provide assistance to their family members,” he said.

Despite the challenges posed by the global financial crisis, the BSP official said there is continued strong demand for Filipino workers abroad.

“There is greater preference to Filipinos, than non-Filipinos. We continue to be in demand,” he explained.

Latest statistics from the Philippine Overseas Employment Administration (POEA) showed that the number of approved job orders rose 11.6 percent to 645,775 from 578,535 in the same period last year. The processed job orders consisted of job openings for production, service, as well as professional, technical and related workers for Saudi Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait and Hong Kong.

OFW remittances grew by 8.2 percent to a record level $18.76 billion last year from $17.35 billion in 2009 due to the continued demand for skilled Filipino workers abroad as well as the expansion of remittance centers abroad giving OFWs more options to send money to their loved ones in the Philippines.

Last April, the BSP lowered its OFW remittance growth forecast to seven percent or $20.1 billion instead of the original target of eight percent or $20.1 billion this year due to the tensions in the Middle East and North African region and the disasters in Japan. Next year, it expects a slower growth of five percent or $21.1 billion.