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Remittances reach $23.2B

Personal remittances from Overseas Filipinos (OFs) reached US$23.2 billion for January to September 2017, registering 4.8 percent year-on-year growth, BSP Governor Nestor A. Espenilla, Jr. announced yesterday.

Personal remittances from land-based OFs with work contracts of one year or more including other household-to-household transfers rose by 5.1 percent to $18.4 billion while those from sea-based and land-based OFs with work contracts of less than one year likewise increased by 3.5 percent to US$4.8 billion for the same period. However, personal remittances in September (at US$2.3 billion) were 7.0 percent lower than the level posted in the same month last year.

For the first nine months of 2017, cash remittances from OFs coursed through banks recorded 3.8 percent growth from the level posted in the same period a year ago, reaching $20.8 billion. Cash remittances from land-based and sea-based workers grew by 3.8 percent and 3.5 percent to reach $16.4 billion and $4.4 billion, respectively.  For September alone, however, total cash remittances fell by 8.3 percent year-on-year to $2.2 billion.

This was attributed to the 11.7 percent drop in cash remittances from land-based workers which offset the 6.0 percent increase in transfers from sea-based workers.  There are reports that a number of global correspondent banks have closed their service facilities on money service business (MSB), reflective of the increasing global trend to reduce correspondent banking relationships and focus more on home market. This may have partly affected remittances flows during the month.