Cash remittances sent through the formal banking channels rose by 2.9 percent to $19.332 billion as of end-July compared to $18.785 billion same period last year, based on Bangko Sentral ng Pilipinas (BSP) data released on Monday, Sept. 16.

For the month of July only, overseas Filipinos’ cash remittances went up by 3.1 percent to $3.085 billion versus $2.992 billion same month in 2023.

Meanwhile, for the first seven months, cash remittances by land-based workers totaled $15.46 billion, up 3.2 percent from $14.98 billion in 2023. Sea-based workers also transferred $3.87 billion, up 1.6 percent from $3.81 billion last year.

The central bank noted that the growth in cash remittances from the US, Saudi Arabia, and United Arab Emirates boosted the January to July fund transfers. The US, Singapore and Saudi Arabia continue to register the highest share of overall remittances.

The BSP reported that personal remittances increased by three percent to $21.532 billion as of end-July versus $20.911 billion 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. Cash remittances is part of overall personal remittances, but it is more easily captured because it is channeled through the banking system.

For the month of July, personal remittances rose by 3.2 percent to $3.428 billion from $3.321 billion.

Personal remittances from land-based workers with work contracts of one year or more reached $16.74 billion as of end-July, up three percent from $16.24 billion same time in 2023. Sea- and land-based workers with work contracts of less than one year also increased by 2.4 percent to $4.27 billion from $4.17 billion.

Based on BSP data, for the first seven months of 2024 the US accounted for 41.1 percent of the overall remittances, followed by Singapore with 6.9 percent; Saudi Arabia with six percent; Japan with five percent; UK with 4.9 percent; and UAE with 4.2 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.

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.