BSP: Dollar remittances easing

JAN-AUG 2018

The amount of dollars sent home by expatriate Filipinos rose further in the first eight months of the year, but data from the Bangko Sentral ng Pilipinas (BSP) also showed a worrisome trend of tapering growth in recent months for remittances, a key leg of the country’s economy.

In a statement, BSP Deputy Govenor Cyd Tuaño-Amador said personal remittances from overseas Filipinos increased by 2.4 percent year-on-year to reach $21.2 billion in the first eight months of 2018.

The central bank’s data revealed that the monthly rise in the cumulative amounts of remittances this year have been moderating, compared to monthly data for the same periods last year — a phenomenon which the central bank has not yet commented on.

Personal remittances from land-based workers with work contracts of one year or more grew by 2.1 percent to $16.3 billion, while transfers from sea-based workers and land-based workers with short-term contracts expanded by 3.8 percent to $4.4 billion.

Personal remittances represent the sum of net compensation of employees, personal transfers, and capital transfers between households.

For January to August 2018, cash remittances — narrower data which covers only those funds remitted through the formal banking system — from overseas Filipinos recorded a 2.5 percent growth from the same period a year ago to reach $19.1 billion.

Cash remittances sent by land-based workers rose by 2.1 percent to $15.1 billion, and transfers from sea-based workers grew by 3.8 percent to $4 billion.

However, personal remittances for August 2018 were 1.4 percent lower than the level posted in August 2017.

August 2018 data also showed cash remittances posting a 0.9 percent decrease year-on-year to $2.5 billion. The countries that contributed to the decline in August 2018 are the United Arab Emirates (UAE), Saudi Arabia, and Qatar.