MANILA, Philippines — Remittances from overseas Filipino workers reached a record high in 2025, bolstered by a year-end surge as workers rushed to take advantage of a favorable exchange rate and beat a looming tax change in the United States, central bank data showed Monday.
Cash remittances sent through banks rose 3.3% to $35.63 billion for the full year, up from $34.49 billion in 2024, according to the Bangko Sentral ng Pilipinas. The year concluded with a strong December performance, where inflows grew 4.2% year-on-year to $3.52 billion.
The steady stream of foreign currency remains a cornerstone of the Philippine economy, accounting for 7.3% of the nation’s gross domestic product in 2025.
The December spike was driven largely by land-based workers, who sent $2.83 billion during the month, a 4.5% increase over the previous year. Sea-based workers contributed $690 million, up 3.3%.
Economists noted that the year-end growth was fueled by a unique combination of seasonal demand and currency volatility. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said many Filipinos working abroad waited for the U.S. dollar to breach the 59-peso mark—a record high hit in late October—before converting their earnings.
“Some OFWs and their dependents waited to convert at the highest possible exchange rate,” Ricafort said, noting that the “pent-up demand” carried through into the holiday season.
Ricafort also pointed to a strategic shift in timing by workers in the United States, who sought to move money before the implementation of a new 1% tax on remittances from the U.S. scheduled to take effect in 2026.
The United States remained the primary source of these financial lifelines, accounting for 39.7% of total remittances. Other major contributors included Singapore at 7.3%, Saudi Arabia at 6.6%, and Japan at 5%. The United Kingdom and the United Arab Emirates each accounted for 4.6%.
When including in-kind transfers and money sent through informal channels, total personal remittances for 2025 reached $39.62 billion, representing a 3.3% increase from the prior year.
For the full year, land-based workers sent a total of $28.49 billion through formal banking channels, while sea-based workers remitted $6.94 billion.
