Cash remittances sent through the formal banking channels went up by 2.8 percent to $5.481 billion as of end-February from $5.331 billion same time last year, based on Bangko Sentral ng Pilipinas (BSP) data.
For the month of February only, cash remittances increased by three percent year-on-year to $2.646 billion versus $2.569 billion in February 2023.
The BSP on Monday, April 15, said “the expansion in cash remittances in February 2024 was due to growth in receipts from both land- and sea-based workers.”
For the first two months, cash remittances by land-based workers totaled $4.38 billion, up 3.2 percent from $4.25 billion in 2023. Sea-based workers also transferred $1.10 billion, up 1.2 percent from $1.09 billion last year
The central bank noted that the “growth in cash remittances from the United States (US), Saudi Arabia, Singapore, and the United Arab Emirates (UAE) contributed mainly to the increase in remittances in January-February 2024.”
In terms of country source, the US continued to report the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia, and Japan, said the BSP.
As of end-February, the US had a 41.4 percent share of total remittances. The US normally appears as the top country source of remittances because of a common practice of remittance centers to course remittances through correspondent banks based in the US.
After the US, Singapore contributed 7.3. percent while Saudi Arabia and Japan had 5.6 percent and 5.2 percent of total share, respectively.
The BSP records both cash remittances and personal remittances but they base its projection for remittances on the cash remittances data.
Personal remittances are computed as the sum of an overseas Filipino’s net compensation and includes personal transfers and capital transfers between households.
As of end-February, personal remittances grew by 2.8 percent to $6.1 billion from $5.931 billion same period in 2023.
For the month of February, personal remittances rose by three percent to $2.946 billion versus $2.86 billion last year.
Personal remittances are from land-based workers with work contracts of one year or more, and sea- and land-based workers with work contracts of less than one year.
For the first two months, the central bank said land-based workers with work contracts of one year or more transferred personal remittances of $4.75 billion, up 3.1 percent from $4.61 billion last year. Sea- and land-based workers with work contracts of less than one year sent home $1.21 billion, up 1.6 percent from $1.19 billion in 2023.
For 2024, the BSP expects cash remittances to grow by three percent year-on-year.
Last year, cash remittances totaled $33.491 billion, up 2.9 percent from 2022’s $32.539 billion.