Cash sent home by Filipinos living and working abroad grew 8.4 percent in October, the fastest pace in seven months, to $2.275 billion ahead of the Christmas holiday season.
Latest Bangko Sentral ng Pilipinas data released Friday showed that cash remittances in October rose from $2.099 billion in the same month last year, reversing the 3-percent decline a year ago.
The remittances that flowed through banks in October also exceeded September’s $2.186 billion, hence staying above the $2-billion mark for 21 straight months.
The remittances growth posted in October was the highest since March’s 10.7-percent jump, a reversal of the 8.3-percent drop in September.
In a statement, BSP Governor Nestor A. Espenilla Jr. said the bulk of the cash remittances in October came from the United Arab Emirates and the United States.
From January to October, cash remittances grew 4.2 percent to $23.056 billion from $22.124 billion in the first 10 months of last year.
The rise in 10-month remittances “was boosted by the increase in remittances from land- and sea-based workers, which both grew by 4.2 percent compared to the level posted a year ago,” Espenilla said.
Four-fifths of the end-October cash remittances were from Filipinos in Germany, Hong Kong, Japan, Kuwait, Qatar, Saudi Arabia, Singapore, the UAE, the United Kingdom and the US.
Cash remittances are projected to reach a record $28 billion by yearend.
Last year, cash sent home by overseas Filipinos through banks reached a record-high of $26.9 billion, up 5 percent from 2015’s $25.6 billion.
Remittances are the country’s largest source of foreign exchange income, insulating the domestic economy from external shocks by ensuring a steady supply of dollars into the system.
These cash transfers are also a major driver for domestic consumption, hence contributing to strong economic growth.#