Peso falls after slow growth in OFW remittances

MANILA, Philippines — The peso fell on Wednesday amid reports that growth in remittances from overseas-based Filipinos in March was at its slowest since September 2009.

The local currency closed at 41.20 against the US dollar, down by 12 centavos from the previous day’s finish of 41.08:$1.

Intraday high hit 41.11:$1, while intraday low settled at 41.25:$1.

Volume of trade amounted to $934.6 million from $960.5 million previously.

The depreciation of the peso came as the Bangko Sentral ng Pilipinas reported that remittances reached $1.75 billion in March, up by 3 percent from $1.7 billion in the same month in 2012.

But the growth rate was the slowest since September 2009.

The BSP said the fact that remittances continued to grow proved that global demand for Filipino workers remained robust. However, economists said the slowdown indicated that growth in remittances could plateau in the next few years given the already huge number of overseas Filipino workers.

Remittances are a closely watched economic indicator as these largely fuel household consumption.