Cash remittances coursed through the banking system totaled $28.304 billion at the end of October, increasing by three percent from the same period last year, which saw $27.492 billion in remittances, based on the latest data from the Bangko Sentral ng Pilipinas (BSP).

The BSP reported on Monday, Dec. 16, that for the month of October alone, bank-transferred remittances rose 2.7 percent to $3.079 billion from $2.998 billion in the same period in 2023.

For the first 10 months of the year, cash remittances from land-based workers expanded by 3.4 percent to $22.62 billion from $21.88 billion last year. Sea-based workers remitted $5.69 billion, up by 1.4 percent compared to $5.61 billion at the end of October 2023.

Meanwhile, cumulative personal remittances, which include fund transfers not transacted through banking networks, also increased by three percent at the end of October to $31.487 billion, compared to $30.569 billion last year.

Personal remittances are calculated as the sum of an overseas Filipino’s net compensation and include personal transfers and capital transfers between households.

On a monthly basis, personal remittances went up by 2.7 percent to $3.415 billion compared to $3.327 billion last year.

The BSP said the “expansion was seen in remittances from both land-based and sea-based workers” during the period.

Personal remittances from land-based workers with work contracts of one year or more amounted to $24.48 billion at the end of October, up 3.2 percent from $24.74 billion in the same period in 2023. Remittances from sea- and land-based workers with work contracts of less than one year rose 2.2 percent to $6.28 billion from $6.14 billion.

The central bank said the growth in cash remittances from the US, Saudi Arabia, Singapore, and the United Arab Emirates significantly impacted the increase in remittances from January to October 2024.

The US accounted for the largest share of overall cash remittances, with 41.2 percent, followed by Singapore with 7.1 percent and Saudi Arabia with 6.2 percent.

The US typically appears as the top source country for remittances because of the common practice of remittance centers to course remittances through correspondent banks based in the US. The BSP said the US “would appear to be the main source of (Overseas Filipinos’) remittances because banks attribute the origin of funds to the most immediate source.”

The BSP continues to expect that for 2024 and 2025, cash remittances will grow by three percent year-on-year. In US dollar terms, cash remittances will likely reach $34.5 billion this year and $35.5 billion in 2025.

The BSP makes projections for annual remittances in terms of cash remittances, which represent the total value of private income transfers sent by Filipino overseas workers. Cash remittances are a subset of personal remittances. Both are sent through formal channels such as banks and money transfer operators and informal networks, including relatives, friends, and co-workers.

Last year, cash remittances reached $33.491 billion, up 2.9 percent from 2022’s $32.539 billion.