Remittances from overseas Filipinos seen to continue growing

MANILA  -As the peso appreciates and approaches the 53:$1 territory, remittance firm WorldRemit sees a continued growth of inbound money transfers as overseas Filipinos face better job prospects.

The local currency closed on Friday at 54.40:$1, strengthening against the greenback for the fourth straight day. It was the peso’s strongest showing in three months.

Data at the Bangko Sentral ng Pilipinas (BSP) show that last April, cash remittances from Filipinos abroad increased by 3.7 percent to $2.48 billion.

Earl Melivo, head of WorldRemit in the Asia-Pacific region, said in an interview with the Inquirer that remittances were poised to keep growing in the postpandemic global economy.

“This doesn’t affect remittances at all (because) the host countries (of overseas Filipinos) have already opened up or relaxed their restrictions, probably starting two years ago,” Melivo said

What’s helping keep remittances growing is the continuing expansion of transfer made digitally, he added.

“In the last three years, we’ve seen rapid growth (in the use of) mobile wallets,” Melivo said. “One of the silver linings of this pandemic is we’re all forced to go digital. So even on the receiving side, those who used to receive via cash are now actually conveniently receiving them 24/7 through mobile wallets.”

Even then, he said bank transfers continued to be strong because banks were more flexible now more than ever.

“It’s quite easier for you to open a bank account now, [especially] digital ones,” Melivo said. “So we’re seeing a lot more volumes going to bank accounts in the Philippines.”

Citing WorldRemit analysis, he said the growth of Philippine-bound remittances this year would probably be about 3 percent or 4 percent, which agreed with the BSP’s own forecast.

“It highly depends on what happens in major economies, particularly in the United States where there were concerns of a recession happening this year,” Melivo said.

“But even so, I think overseas Filipinos will keep on sending money especially because they are sending to their loved ones, whether they are immediate or extended family,” he said.

Melivo added that, because WorldRemit was a digital company bereft of costs that legacy players were faced with, the company expected to continue to see double-digit growth in terms of volume. INQ