Remittances up 4.8% in 4 months at $9.898 B

Published June 15, 2021, 5:36 PM

by Lee C. Chipongian

Cash remittances sent via the banking system as of end-April rose by 4.8 percent year-on-year to $9.898 billion from $9.448 billion.

The Bangko Sentral ng Pilipinas (BSP) said for the first four months, overseas Filipinos in the US, Malaysia, Singapore and South Korea contributed the most of remitted funds.

“Cash remittances from overseas Filipinos has been resilient and continues to be strong,” said BSP Governor Benjamin E. Diokno on Tuesday. He noted that remittances flows “remain steady as major economies reopen”.

By country sources, the BSP said the US continue to register the biggest share of overall remittances for January-April at 40.3 percent. This is the case most of the time because correspondent banks tapped by remittance companies are located in the US and during fund transfers, the location is registered as the source country.

After the US, other countries in the top 10 sources of remittances are Singapore, Saudi Arabia, Japan, the United Kingdom, United Arab Emirates, Canada, South Korea, Qatar and Taiwan. These 10 countries accounted for 78.1 percent of total cash remittances.

For the month of April, overseas Filipinos sent $2.305 billion cash remittances which was 12.7 percent more than same time last year of $2.046 billion.

Just in April, the BSP said land-based workers remitted $1.779 billion through the banks, up by 15.2 percent year-on-year while sea-based workers sent $526 million, up from $501 million or by 4.9 percent

last year.

The BSP said personal remittances which is the sum of personal transfers and compensation of employees, reached $11.028 billion as of end-April, an increase of 5.1 percent year-on-year from $10.494 billion in 2020.

For the month of April, personal remittances was up by 13.1 percent year-on-year to $2.574 billion from $2.276 billion same time in 2020.

The BSP said personal remittances from land-based workers with work contracts of one year or more went up by 15.2 percent in April to $1.931 billion from $1.677 billion.

Sea-based and land-based workers’ remittances with work contracts of less than one year rose by 4.9 percent to $574 million versus $547 million in 2020.

The BSP is projecting cash remittances to grow by four percent this year, reversing the pandemic-induced 0.8 percent contraction in 2020.