OFW remittances reach 3-month high in March

  • Page Views 1437
  • MONEY sent home by overseas Filipino workers (OFWs) rose to a three-month high in March, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

    Personal remittances — made up of OFWs’ net compensation; personal transfers, whether in cash or kind; and capital transfers between households — reached $2.796 billion in the month, 6.4 percent higher than the $2.627 billion posted a year earlier, and 9.3 percent higher than the $2.557 billion booked in February.

    The amount was the highest posted since December 2018.

    In a comment, Rizal Commercial Banking Corp. economist Michael Ricafort attributed the latest growth to base effects and seasonality.

    “The faster growth… may have to do with lower base/denominator effects a year ago,” Ricafort said.

    He noted that remittances in March last year fell by 9.9 percent after the government briefly banned the deployment of OFWs to Kuwait and threatened to do the same in other countries that have cases of abused Filipino workers.

    “In a typical year, seasonal increase in OFW remittances and conversion to pesos also happen in March to fund increased spending for graduation celebrations, as well as preparations for Holy Week holiday-related spending (considered also as a major spending for families in a typical year), and also for upcoming tuition payments,” Ricafort said.

    The March figure brought first-quarter remittances to $8.098 billion, 3.7 percent higher than the $7.809 billion registered in the comparable 2018 period.

    “The continued growth in personal remittances during the first three months of 2019 was driven by steady remittance inflows from land-based OF workers with work contracts of one year or more, which aggregated to $6.2 billion, and compensation of sea-based workers and land-based workers with short-term contracts, which totaled $1.7 billion,” BSP Governor Benjamin Diokno said in a statement.

    Cash remittances, which only count money coursed through banks, rose by 6.6 percent to $2.514 billion in March from $2.360 billion a year earlier. It also rose by 9.2 percent from $2.301 billion in February 2019.

    “Of the 6.6 percent growth in March 2019, 2.0, 1.7 and 1.2 percentage points were contributed by the United States, Singapore and the United Kingdom, respectively,” Diokno added.
    Year to date, cash remittances grew by 4.2 percent to $7.299 billion from $7.006 billion last year.

    “This growth was buoyed by the increase in remittances from both land-based ($5.71 billion) and sea-based ($1.58 billion) workers, which rose by 2.5 percent and 10.8 percent, respectively,” Diokno said.

    By country source, the US registered the highest share of overall remittances for the period at 35.1 percent, he added.

    It was followed by Saudi Arabia, Singapore, United Arab Emirates, the UK, Japan, Canada, Qatar, Hong Kong and Kuwait.

    The combined remittances from these countries accounted for almost 78 percent of total cash remittances from January to March 2019.

    OFW remittances hit $32.21 billion last year, the “highest annual level to date,” the central bank said. (M. Caraballo, TMT)

    Share

    New Posts Recently publish post More

    • 29 April 2021
      6 days ago No comment

      Rotary Club Vancouver Mountainview, ReyFort Media Group forge partnership 

      Two vibrant organizations have entered into a promising partnership. The Rotary Club of Vancouver Mountainview (RCVM) and Reyfort Media Group will work together to promote community service and volunteerism. Starting immediately, RCVM will produce a regular column with ReyFort Media Group’s flagship publication, the Philippine Asian News Today. In ...

    • 29 April 2021
      6 days ago No comment

      Citizens, labor groups create community pantries all over the Philippines

      Ana Patricia Non had to temporarily close down her small business in Quezon City due to the lockdowns imposed in the city, but what started as a small gesture for others who are in need and are suffering because of the pandemic created a ripple effect that surprised her. ...

    • 29 April 2021
      6 days ago No comment

      Pacquiao second top choice for President after Sara: survey

      Senator Manny Pacquiao topped Pulse Asia’s latest survey on the Filipinos’ preferred senatorial candidates for next year’s national elections. The pollster released a report on April 22 about how prospective national candidates in the 2022 election are faring in public opinion. Interestingly, Pacquiao is also among the second top ...

    • 29 April 2021
      6 days ago No comment

      The Latest CryptoCurrency is Here! Developed by a young, local Filipino-Canadian

      Ever wonder how Bitcoin got its start? Tracking the latest on the Dogecoin craze but wishing you had gotten in sooner? Introducing the newest Cryptocurrency: AquaGoat! Only 22 days old, this ecological yield-generating social cryptocurrency is being developed by local Filipino-Canadian Patrick Aberin and his team. Within the past ...

    %d bloggers like this: