MANILA, Philippines — Remittances from overseas Filipino workers (OFWs) continued to climb in September, increasing by 3.3 percent amid the anticipated seasonal holiday surge and currency gains from favorable exchange rates.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that personal remittances reached $3.34 billion in September, $107 million higher than the $3.23 billion recorded in the same month last year.
Of the total amount, cash remittances coursed through banks amounted to $3.01 billion, $96 million higher than last year’s $2.91 billion.
Michael Ricafort, chief economist of the Rizal Commercial Banking Corp., said the increase in remittances was due to the expected seasonal surge as OFWs convert pesos during the Christmas and New Year holiday season in December.
The stronger peso against the dollar, which hovered around 55 to 56 levels in September, may have also affected the money sent home by OFWs, Ricafort said.
This somewhat reduced the peso equivalent of remittances and partly increased the year-on-year growth in September, since more dollars are needed for the same amount or expenses in pesos.
From January to September, the sum of net compensation of employees, personal transfers, and capital transfers between households grew by three percent to $28.07 billion versus last year’s $27.24 billion.
During the nine-month period, cash remittances also increased by three percent to $25.23 billion from $24.49 billion a year ago.
“The growth in cash remittances from the United States, Saudi Arabia, Singapore and the United Arab Emirates contributed mainly to the increase in remittances in January to September 2024,” the BSP said.
Data showed that the US accounted for the highest share of overall remittances with 41.3 percent, followed by Singapore with seven percent, Saudi Arabia with 6.2 percent, Japan with 4.9 percent, United Kingdom with 4.8 percent, United Arab Emirates with 4.3 percent and Canada with 3.5 percent.
For the coming months, Ricafort said OFWs are expected to send more money home as their families would still need to cope with high prices as Filipinos prepare for the holidays in December.
“Possible protectionist policies by US president-elect Donald Trump, who will start office on Jan. 20, 2025, could tighten immigration rules in the US in an effort to create and protect more jobs for US citizens, thereby potentially slowing down OFW remittances from the US,” he said.
The BSP projects personal and cash remittances to grow by three percent this year and in 2025.