Filipinos sent home 3.1% more remittances as of Oct

Money sent home by Filipinos living and working overseas grew by 3.1 percent in the first 10 months of 2022 to reach $29.72 billion from $28.82 billion in the same period last year as inflation was rising, the peso weakening to record levels and the peak remittance season was approaching.

The Bangko Sentral ng Pilipinas (BSP) said that inflows in October alone grew by 3.5 percent to $3.23 billion from $3.12 billion in the same month of 2021.

The BSP said there were increases in receipts from both land-based Filipinos with contracts of more than a year (3.6 percent) as well as those from land-based and sea-based with contracts of less than a year (3.7 percent).

Of these inflows, cash remittances sent to the Philippines through banks increased also by 3.5 percent to reach $2.91 billion last October from $2.81 billion in the same month of 2021.

October data brought the total for the January to October period to $26.74 billion in cash remittances, an increase of 3.1 percent from $25.93 billion in the same 10 months last year.

For the 10 months, the bulk of the inflows was sent from the United States, Saudi Arabia, Singapore and Qatar.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said cash remittances in October were the highest in three months or since July, and were close to the record monthly high of $2.987 billion that was recorded in December 2021.

Ricafort said higher inflows reflected faster economic growth in some major countries that host overseas Filipino workers (OFWs).

“The continued growth in OFW remittances may be attributed to the relatively higher inflation that may have required the sending of more [money] to cope with higher prices of goods and services for OFWs’ dependents in the Philippines,” he said.

—Ronnel W. Domingo