Connect with us

Hi, what are you looking for?

Stock Markets

Cash remittances up for 7th straight month in August

Cash remittances rose 5.1% to $2.609 billion in August. — Reuters

By Jenina P. Ibanez, Reporter

Money sent home by overseas Filipino workers (OFWs) increased for the seventh straight month as more host economies with high vaccination rates reopened.

Cash remittances rose 5.1% to $2.609 billion in August from $2.483 billion a year earlier, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Friday.

“The growth in cash remittances was due to the increase in remittances from land-based workers and sea-based workers, which rose by 4.1 percent (to $2.032 billion from $1.952 billion) and 8.6 percent (to US$577 million from US$531 million), respectively,” the BSP said.

Cash remittances however declined 8.55% from $2.853 billion in July, which was the biggest inflow since the $2.89 billion in December 2020.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the month-on-month dip in cash remittances since July may have reflected recent risks arising from the more infectious Delta coronavirus disease 2019 (COVID-19) variant in host countries.

“But overall, it seems that recovery will continue especially for countries where our OFWs are located,” he said.

For the first eight months of 2021, total cash remittances went up 5.7% to $20.38 billion from $19.285 billion recorded in the same period last year.

The central bank said remittances from OFWs in the United States, Malaysia, and South Korea contributed to the boost in the year-to-date tally.

The US is still the biggest remittance source, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, South Korea, Qatar, and Taiwan.

Combined remittances from these countries accounted for 78.8% of total cash remittances.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said further reopening and recovery of many economies as they move closer to herd immunity against the COVID-19 led to the creation of more jobs for Filipinos.

“OFW remittances remain resilient despite the repatriation of more than 700,000 OFWs since the pandemic, given the increased social function of providing assistance to OFW families and dependents in the country adversely affected by the COVID-19 pandemic/lockdowns since last year, as well as the need to send more remittances to make up for higher inflation in recent months,” he said.

Metro Manila was under the strictest form of lockdown for two weeks in August to curb a fresh wave of COVID-19 infections.

UnionBank’s Mr. Asuncion said the bank expected this robust growth in August after it forecasted a 4.9% increase.

“With this latest data, our forecasts now tell us that 2021 OFW remittance inflow will grow by an average of 4.5%,” he said.

Mr. Asuncion said seasonal inflows ahead of the holidays may be higher than expected.

“This expectation fits in to our view that these inflows will underpin a strong (Philippine peso) narrative ready to counter (US dollar) strength due to a more hawkish US Fed and downward pressures from higher global oil prices,” he said.

Meanwhile, personal remittances, which include inflows in kind, jumped 4.8% to $2.889 billion in August from $2.756 billion a year earlier.

Year to date, personal remittances increased by 5.9% to $22.672 billion from $21.414 billion in the same period last year.

Remittance inflows support household spending, which makes up about 70% of the economy.

The BSP expects cash remittances grow 4% this year after declining by 0.8% in 2020.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock Markets

PHILIPPINE STAR/ MICHAEL VARCAS SAO PAULO — Brazil’s federal health regulator Anvisa on Saturday suspended the use of over 12 million doses of a...

Stock Markets

GLOBE Telecom, Inc. announced on Tuesday that it signed term loan facilities with Bank of the Philippine Islands (BPI) and Metropolitan Bank & Trust...

Stock Markets

THE GOVERNMENT has partnered with grocery operator Puregold Price Club, Inc. on a program that will offer cheaper frozen meat products to consumers. Under...

Finance

A 12-year-old boy from London has made about £290,000 during the school holidays, after creating a series of pixelated artworks called Weird Whales...

Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Captain Of Success. All Rights Reserved.