Overseas Filipino workers (OFWs) sent back nearly $3 billion in cash remittances in August 2024, marking a 3.2% year-on-year increase, according to data released by the Bangko Sentral ng Pilipinas (BSP). The total amount sent through banks and other formal channels reached $2.885 billion, compared to $2.796 billion in August 2023.
The BSP attributed the increase to higher remittances from both land- and sea-based workers. Chief economist Michael Ricafort of Rizal Commercial Banking Corp. pointed out that the growth is "seasonal," driven by school-related expenses. “Some of these funds are used to cover tuition and other compulsory school costs,” Ricafort explained.
However, remittances saw a slight decline from July’s $3.085 billion. Ricafort noted that the peso’s strengthening in August, from P58:$1 to around P56:$1, contributed to this decrease, as fewer dollars were needed to meet local expenses.
From January to August 2024, cash remittances reached $22.217 billion, a 2.9% increase from the same period in 2023. The US, Saudi Arabia, UAE, and Singapore were the top contributors to this growth, with the US accounting for the largest share.
In addition to cash remittances, personal remittances—which include cash and goods sent home—rose by 3.3% year-on-year to $3.204 billion in August.
The steady rise in remittances has helped offset inflation, which eased to 1.9% in September, the lowest since May 2020.
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