Remittances reach $27.2 B as of Nov.

Published January 15, 2020, 12:00 AM

by manilabulletin_admin


Remittances captured by the banking system increased by 4.4 percent year-on-year to $27.2 billion as of end-November 2019 from $26.1 billion, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

The BSP projects cash remittances which are sent via banks will grow by three percent year-on-year in 2019, lower compared to 3.1 percent in 2018.

For the first 11 months of 2019, the BSP said land-based remittances increased by 3.6 percent year-on-year to $21.3 billion while sea-based workers’ remittances grew by 7.3 percent to $6 billion.

The US continues to be the source of bulk of remittances during the period since correspondent banks used by remittance centers are located in the US. For the January to November 2019 period, the US accounted for 37.7 percent of the total. Next was Saudi Arabia and followed by Singapore, Japan, United Arab Emirates, the United Kingdom, Canada, Hong Kong, Germany, and Qatar. “The combined remittances from these countries accounted for 78.4 percent of total cash remittances during the period,” said the BSP.

For the month of November, cash remittances of workers with work contracts of less than one year totaled $2.4 billion, up two percent from $2.3 billion same time in 2018.

Aside from cash remittances, the BSP since 2012 also report personal remittances. These are the “sum of net compensation of employees, personal transfers and capitai transfers between households.”

For the first 11 months of 2019, personal remittances went up by 4.1 percent year-on-year to $30.3 billion from $29.1 billion.

For November only, personal remittances increased by two percent year-on year to $2.63 billion from $2.58 billion.

“The steady growth in personal remittances during the first eleven months
of 2019 drew support from the remittance inflows from land-based overseas Filipino workers with work contracts of one year or more, which grew by 3.6 percent to $23.1 billion from $22.3 billion in the same period last year.
Likewise, the combined remittances of sea-based and land-based workers with short-term contracts rose by 7.3 percent to $6.5 billion during the period compared to $6 billion a year ago,” the BSP said.