Personal remittances for July 2022 reach $3.24 billion, while those for first 7 months of the year reach $20.33 billion
(Eagle News) – The Bangko Sentral ng Pilipinas reported higher personal remittances from overseas Filipinas (OFs) for the first seven months of the year at US$20.33 billion, and for July 2022 at $3.24 billion.
The cumulative personal remittances from January to July this year were higher by 2.7 percent compared to the same period last year, while the July 2022 remittances were higher by 2.3 percent compared to the same month last year.
Personal remittances in July 2021 were just $3.17 billion, while those from January to July 2021 reached only $19.78 billion.
The BSP attributed the increase in remittances due to the growth in remittances from both land-based and sea-based workers.
“The expansion in cash remittances in July 2022 was due to the growth in receipts from land-based and sea-based workers,” the BSP said.
The cumulative personal remittances for the first seven months of the year rose by 2.7 percent to US$20.33 billion, compared to the “US$19.78 billion registered in the comparable period in 2021.”
-US dominate countries with highest overseas Filipino remittances-
Most of the cash remittances for the period January to July 2022 came from the United States (41.4 percent), Singapore (6.9 percent), Saudi Arabia (5.9 percent), Japan (5 percent), United Kingdom (4.9 percent), United Arab Emirates (4.0 percent) and Canada (3.5 percent), and Qatar (2.8 percent).
The BSP, however, clarified why the US seemed to be the main country source for overseas Filipino remittances, citing certain limitations of their data.
“There are some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the U.S. Also, remittances coursed through money couriers cannot be disaggregated by actual country source and are lodged under the country where the main offices are located, which, in many cases, is in the U.S,” it explained.
“Therefore, the U.S. would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source,” it said.
-Cash remittances coursed through banks also rise-
The BSP said “cash remittances coursed through banks grew by 2.3 percent to US$2.92 billion in July 2022 from US$2.85 billion recorded in the same month last year.”
“On a year-to-date basis, cash remittances amounted to U$18.26 billion in January-July 2022, up by 2.8 percent from US$17.77 billion recorded in the same period last year,” it reported.
The BSP said that that increase in personal remittances last July was due to remittances sent by both land-based and sea workers.
It identified the personal remittances coming from “land-based workers with work contracts of one year or more” and from “sea-and land-based workers with work contracts of less than one year.”
The Philippine government has consistently hailed overseas Filipino workers as the country’s new heroes for their role in supporting the country’s economy through their remittances.
In recognition of their valuable role, former President Rodrigo Duterte has pushed for the creation of a bank for OFWs and of a separate government department focused on their concerns — the Department of Migrant Workers.
(Eagle News Service)
