Personal remittances from overseas Filipinos (OFs) reached $3.02 billion in August this year, data from Bangko Sentral ng Pilipinas (BSP) showed on Monday.
According to BSP, the recorded remittance in August 2022 is higher by 4.4 percent than the $2.89 billion posted in the same month last year.
This resulted in the cumulative personal remittances rising by 3.0 percent to $23.34 billion in the first eight months of 2022 from $22.67 billion registered in the same period of 2021.
"The increase in personal remittances in August 2022 was due to remittances sent by 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," explained BSP in a statement.
Similarly, cash remittances coursed through banks grew by 4.3 percent to $2.72 billion in August 2022 from $2.61 billion recorded in the same month last year.
On a year-to-date basis, cash remittances amounted to $20.99 billion in January-August 2022, up by 3.0 percent from $20.38 billion recorded in the same period last year.
"The expansion in cash remittances in August 2022 was due to the growth in receipts from land-based and sea-based workers," said BSP.
On country source, the growth in cash remittances from the United States (41.7 percent), Singapore (6.9 percent), Saudi Arabia (5.8 percent) and Qatar (2.8 percent) contributed largely to the increase in remittances in the first eight months of 2022.
In a report, Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the "modest single-digit growth" in OFW (overseas Filipino worker) remittances in recent months to global inflation and higher interest rates.
He added that there may still be a need for OFs to send more remittances due to higher prices of commodities, which offsets whatever foreign exchange gains due to the stronger US dollar against major global currencies.
"Whatever gains OFWs and their families/dependents may have due to more peso proceeds for their US dollars/foreign currencies may be offset/negated by higher prices/inflation, currently at a new 4-year high at 6.9 percent," said Ricafort.
"For the coming months, OFW remittances and conversion to peso [is] expected to seasonally increase in 4Q (fourth quarter), in preparation for the holiday season and spending, a consistent pattern seen for many years/decades," he added.
Source: Manila times