MANILA, Philippines--The Bangko Sentral ng Pilipinas expects remittances from overseas Filipinos to hit a record $17.9 billion this year despite the global downturn.

Of the amount, $17.3 billion would be coursed through the banking system, based on the latest BSP outlook.

The amount was arrived at using the BSP's minimum growth projection of 6 percent, or less than half the 13-percent expansion expected for 2008, for both cash transfers coursed through banks and those sent through informal channels.

Under the BSP's best case scenario for this year, foreign exchange remittances from overseas Filipino workers may grow by 10 percent.

"We expect the demand for Filipino workers overseas to remain strong due to the diversity and quality of skills they offer, and a gradual increase in the percentage of OFWs gaining permanent residency status," BSP Governor Amando Tetangco Jr. said in an interview published by New York-based think tank Global Source.

"While we expect the crisis to affect permanent workers, we believe that they have better flexibility to look for replacement jobs compared to workers who rely on contract renewals," Tetangco said.

The BSP chief noted that bilateral talks with host countries have also continued to open up new employment opportunities abroad for Filipinos in terms of translation and transcription services.

"Furthermore, the inelastic demand for medical and healthcare practitioners from the aging population of developed countries account for the continued demand for overseas labor particularly from the Philippines," Tetangco said. "These skilled workers earn more income and remit more foreign exchange."

Last year, the BSP estimated that the banking system had captured $16.3 billion in overseas Filipino remittances, up by 13 percent over a year ago. Including money sent to local households using non-banking channels, remittance inflows last year likely reached $16.9 billion, based on official estimates.