Remittances growth hit 5-mo high of 3.7% in Sept

Money sent home by overseas Filipino workers (OFWs) jumped by an annual 3.7% in September, the fastest pace in five months, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Data from the central bank showed cash remittances rose to $3.12 billion in September from $3.01 billion in the same month in 2024.

This was the fastest growth since the 4% logged in April.

Month on month, cash remittances increased by 4.84% from $2.977 billion in August.

For the first nine months of the year, cash remittances sent through banks increased by 3.2% to $26.03 billion from $25.23 billion a year ago.

“The United States remained the top source of remittances to the Philippines during January-September 2025, followed by Singapore, and Saudi Arabia,” the BSP said in a statement.

Cash remittances from the US accounted for 40.4% of the total in the nine-month period.

This was followed by Singapore (7.1%), Saudi Arabia (6.4%), Japan (4.9%) the United Kingdom (4.8%), the United Arab Emirates (4.5%), Canada (3.5%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.5%).

Meanwhile, personal remittances went up by 3.8% to $3.46 billion in September from $3.34 billion a year earlier.

In the January-to-September period, personal remittances rose by 3.2% to $28.97 billion from $28.07 billion a year ago.

Personal remittances include both cash coursed through banks and informal channels as well as in-kind remittances.

Analysts said OFWs sent home more money starting September, as the holiday season approaches.

“The ‘ber’ months effect kicked in early, with OFWs sending more ahead of the long holiday season,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

He added that the strong labor market and a competitive peso also supported remittance growth in September.

The peso closed at P58.196 per dollar on Sept. 30, weakening by P1.066 or 1.87% from P57.13 on Aug. 29.

In September, the country’s unemployment rate improved to 3.8% from 3.9% in August. For the first nine months, the jobless rate stood at 4.1%, a tad higher than 4% in the same period last year.

“The onset of ‘ber’ months marks the start of the holiday season for Filipinos. Thus, we may expect OFWs to send their earnings to their families here for the celebrations and gatherings,” Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said.

Mr. Erece said remittance growth could be faster from October to December, before stabilizing in January 2026.

“For the fourth quarter, expect remittances to stay resilient and peak in December. BSP’s 3% full-year growth target looks well within reach,” Mr. Ravelas likewise said.

The BSP expects cash remittances to grow by 3% to $35.5 billion this year.

Source: Business World

Overseas Filipinos’ access to retirement funds expanded

The Bangko Sentral ng Pilipinas (BSP) has amended its regulations to expand investment opportunities for overseas Filipinos by allowing their retirement funds to freely invest in central bank securities.

Personal Equity and Retirement Account-Unit Investment Trust Funds (PERA-UITFs) will no longer be subject to a 10-percent foreign ownership cap. The policy change recognizes that PERA-UITFs may include overseas Filipinos who are considered non-residents under existing regulations.

“The move reflects the BSP’s continued effort to promote financial health. It helps Filipinos, both at home or abroad, build secure and sustainable retirement savings,” the central bank said. “It also helps develop the country’s private pension system and strengthens domestic capital markets.”

PERA contributions climbed to P491.4 million in 2024, up 24 percent from P396.3 million a year earlier, as more Filipinos joined the voluntary savings program. The number of contributors also increased by 6.4 percent to 5,912 from 5,555.

Employed workers accounted for the largest share, contributing P341.7 million from about 4,211 participants. Overseas Filipinos followed with P82.25 million from 789 contributors, while 912 self-employed individuals invested a combined P67.39 million.

The central bank noted that nine out of 13 PERA-UITFs currently exceeded the 10-percent non-resident ownership limit, preventing them from investing in BSP securities. The updated policy will now allow these funds to diversify their portfolios and enhance potential returns for investors.

Under the revised Section 601-Q of the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions, trust entities are still required to report the participation of non-residents in their UITFs and maintain proper internal controls, monitoring systems, and assurance mechanisms.

Trust entities must continue submitting timely, accurate, and comprehensive reports on non-resident funds to the BSP. They must also make available all relevant documents and information for verification of compliance with the terms and conditions governing access to the BSP Securities Facility.

UITFs are investment vehicles managed by banks and trust companies under BSP supervision. They pool funds from various investors, including those with small contributions, to form a diversified portfolio.

These are comparable to mutual funds, which are regulated by the Securities and Exchange Commission and managed by investment companies.

Source: Manila Times

Remittances dip in August but remain higher year-on-year

Money sent home by overseas Filipinos (OFs) eased in August from July’s seven-month high, Bangko Sentral ng Pilipinas (BSP) data showed on Wednesday.

Personal remittances slid to $3.31 billion from $3.35 billion a month earlier. It was, however, 3.2 percent higher compared to the year-ago $3.21 billion.

Cash remittances alone totaled $2.98 billion, also 3.2 percent higher than the $2.89 billion in August last year but lower than July’s $3.18 billion.

The year-on-year gain, the BSP said, “developed on account of higher inflows from both land-based and sea-based workers.”

Land-based OFs were said to have accounted for $2.35 billion, while the sea-based OFWs added $626 million.

SMIC chief economist Dan Roces noted the pickup in cash remittance growth from July’s 3.0 percent, which he said “suggests that remittance flows have some resilience despite global headwinds, and reflects, in part, a lower comparative base or mild fluctuations in monthly flows.”

A weaker peso, he added, will likely boost remittances as recipients benefit from a more favorable exchange rate.

“Evidence from BSP studies has highlighted the positive role of exchange rate depreciation as a driver of remittances,” Roces said.

“The ‘ber’ months (September to December), when remittances traditionally rise, may buoy the remainder of the year,” he added.

Year to date, personal remittances were up 3.1 percent to $25.51 billion from $24.74 billion, while cash remittances also rose 3.1 percent to $22.91 billion from $22.22 billion in January-August 2024.

The United States remained the top source of cash remittances, accounting for 40.4 percent of the eight-month total. Singapore followed at 7.1 percent and Saudi Arabia at 6.3 percent.

Rounding up the top five were Japan (4.9 percent) and the United Kingdom (4.8 percent).

The BSP noted limitations on data by source, as remittance centers abroad normally send the money through correspondent banks that are mostly located in the US.

Also, remittances sent through couriers are recorded under the country where their main offices are located, which again in many cases is the US.

“Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source,” the BSP said.

Source: Manila Times