October remittances up 2.7%, slowest in 4 months

Money sent home by overseas Filipinos posted its slowest growth in four months in October, as some expats might have taken advantage of the weak peso to save on their money transfers.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances coursed through banks amounted to $3.08 billion in October, growing at an annual rate of 2.7 percent.

That growth, however, was the slowest since the 2.5-percent clip recorded in June. In the first 10 months, remittances rose by 3 percent to $28.30 billion, consistent with the growth projection of the BSP for such inflows this year.

READ: Remittances hit 2024 high of $3.08 billion in July

As it is, money sent home by Filipinos overseas is a major source of purchasing power in the Philippines, where consumption typically accounts for about 70 percent of gross domestic product. The central bank projects the amount of such transfers to reach $34.5 billion by the end of 2024.

Sought for comment, Leonardo Lanzona, economist at Ateneo de Manila University, said Filipino migrants might have reduced their remittances amid a weak currency, which can push up the peso value of their transfers.

“The depreciation experienced in October could have reduced the need to provide remittances to family members residing in the country as more pesos can be obtained for the same amount of foreign currency,” Lanzona said.

The central bank said the growth in year-to-date remittances was mainly due to inflows from the United States, Saudi Arabia, Singapore and the United Arab Emirates. By country sources, the United States accounted for the largest share of overall cash remittances, followed by Singapore and Saudi Arabia. —Ian Nicolas P. Cigaral