OVERSEAS Filipinos have sent back home nearly $3 billion in cash remittances in August this year to support school-related and other expenses of their families in the Philippines, data released by the Bangko Sentral ng Pilipinas (BSP) yesterday, October 15, showed.
Cash remittances or money transfers coursed through banks or formal channels stood at $2.885 billion in August, up 32% from $2.796 billion in the same month last year.
The BSP said the growth in cash remittances in August was “due to the growth in receipts from land- and sea-based workers.”
In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the year-on-year growth in cash remittances from Filipinos abroad was “seasonal” amid the school opening season “partly to finance some tuition payments and other school opening-related expenses… as these expenditures are compulsory in nature.”
Month-on-month, however, money transfers saw a decline from $3.085 billion in July.
Ricafort said the peso’s strength seen in August at P56:$1 to P57:$1 levels versus the P58:$1 levels in July “somewhat reduced the peso equivalent of OFW remittances and effectively partly increased the year-on-year growth in OFW remittances” since “more US dollars are needed for the same amount or expenses in pesos.”
From January to August, cash remittances reached $22.217 billion, up 2.9% from $21.581 billion in the first eight months of 2023.
The BSP said the growth in cash remittances from the United States (US), Saudi Arabia, United Arab Emirates (UAE), and Singapore contributed mainly to the increase in remittances in January to August 2024.
“In terms of country sources, the US also posted the largest share of overall cash remittances in January-August 2024, followed by Singapore and Saudi Arabia,” the central bank said.
Meanwhile, personal remittances — the sum of transfer sent in both cash in kind — amounted to $3.204 billion in August, up 3.3% year-on-year.
Cumulative personal remittances in January to August also grew by 3% to $24.736 billion from $24.013 billion seen in the same period last year. (GMA Integrated News)
