MANILA, Philippines -- Overseas Filipinos workers (OFWs) sent an unprecedented amount of money home last December, taking 2007 inflows to a record $14.45 billion, and exceeding the central bank's target by $100 million, data showed Friday.

The central bank, Bangko Sentral ng Pilipinas (BSP), said $1.396 billion was sent through banks in December, the highest for any month and marking the 20th straight month that the inflows topped $1 billion. The December figure was up 5.8 percent year-on-year.

For the full year, OFW remittances increased 13.2 percent over 2006 and exceeded the $14 billion target.

Remittances in 2006 totaled $12.8 billion.

The central bank figures do not include remittances sent through non-banking channels.

Remittances accounted for about 10 percent of the gross domestic product, before adjustment for inflation, in 2007, BSP Governor Amando Tetangco Jr. said in a statement.

These inflows are propping up domestic demand, fueling GDP growth to 7.3 percent in 2007, the best growth in 31 years. They are also providing strong support for the peso, which gained nearly 19 percent against the US dollar last year.

"Robust remittance flows in 2007 were due to continued demand abroad for
Filipino workers and enhanced remittance services provided by banks and non-bank remittance agents," Tetangco said.

A total of 1.07 million Filipinos found jobs abroad last year, representing a 1.0-percent increase from 2006.

The inflows, equivalent to around 10 percent of the gross domestic product, are crucial for the domestic economy, helping to fuel consumption.

They also helped drive the peso up over 19 percent against the US dollar in 2007.

But this currency surge means that foreign-currency salaries of OFWs are translating into fewer pesos. Authorities are offering hedging facilities to some overseas workers to help lessen the impact from the currency's rise.

Over eight million Filipinos, around 10 percent of the population, work abroad as nurses, doctors, maids, sailors, musicians, IT professionals and in other roles.

"The significant rise in remittances in 2007 also resulted from the increased presence of commercial banks and local money transfer agents in countries with high concentrations of Filipino manpower," Tetangco said.

The bulk of remittances come from the United States, the UK, Italy, the Middle East and elsewhere in Asia.

Local banks have said that double-digit growth in remittances is not sustainable.

Previous surges have been led by lenders encouraging overseas Filipinos to send money home officially rather than with friends and relatives but the proportion of inflows coming in through unofficial channels has dropped to around 5 percent of total inflows compared with 20 percent in 2005. Compiled from reports of Thomson Financial, Reuters and The Associated Press

USEFUL REFERENCE: http://www.bsp.gov.ph/publications/media.asp?id=1757