Cash remittances coursed through the banking system reached $13.365 billion as of end-May, up by three percent from same period last year of $12.981 billion, based on the latest data from the Bangko Sentral ng Pilipinas (BSP).
The BSP on Monday, July 15, reported that for the month of May, bank-transferred remittances increased by 3.6 percent year-on-year to $2.583 billion from $2.494 billion.
As for the cumulative personal remittances, this also increased by three percent to $14.894 billion versus same period last year of $14.459 billion.
On a monthly basis, personal remittances went up by 3.7 percent to $2.884 billion from $2.782 billion same time in 2023. Personal remittances are computed as the sum of an overseas Filipino’s net compensation and includes personal transfers and capital transfers between households.
The central bank said the growth in cash remittances from the US, Saudi Arabia, and Singapore contributed mainly to the increase in remittances in the first five months.
The US accounted for 40.9 percent of the overall remittances during the period, followed by Singapore with 7.2 percent; Saudi Arabia with 6.1 percent; Japan with 5.1 percent; United Kingdom with 4.7 percent; and United Arab Emirates with four percent. 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.
Data showed that cash remittances increased as of end-May due to the growth in the receipts from both land- and sea-based workers. Remittances by land-based workers totaled $10.6 billion, up 3.3 percent from $10.26 billion same time in 2023. Sea-based workers transferred $2.77 billion, up 1.7 percent from $2.72 billion last year.
Meanwhile, personal remittances 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 also registered increases.
For the first five months, land-based workers with work contracts of one year or more transferred personal remittances worth $11.47 billion, up 3.1 percent from $11.13 billion last year. Sea- and land-based workers with work contracts of less than one year sent home $3.05 billion, up 2.4 percent from $2.98 billion in 2023.
For 2024, the BSP expects cash remittances to grow by three percent year-on-year.
The BSP makes projections for annual remittances in terms of cash remittances which are the total value of private income transfers sent back by Filipino overseas workers. It is 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 amounted to $33.491 billion, up 2.9 percent from 2022’s $32.539 billion.