Remittances sent by overseas Filipinos to the Philippines continued to increase in July, hitting $3.32 billion – its highest in seven months, data released by the Bangko Sentral ng Pilipinas (BSP) on Friday (Sept. 15) showed.
The said figure represents a 2.5 percent increase in July 2023 from $3.24 billion in the same month last year.
BSP attributed the growth to higher 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.
In total, personal remittances reached US$20.91 billion in the first seven months of 2023, higher by 2.9 percent than the US$20.33 billion recorded in the comparable period in 2022.
Of the personal remittances from overseas Filipinos, BSP said cash remittances coursed through banks amounted to US$2.99 billion in July 2023, up by 2.6 percent from the US$2.92 billion posted in the same month last year.
It added that the expansion in cash remittances in July 2023 was due to the growth in receipts from land- and sea-based workers.
Year-to-date figures showed personal remittances have reached US$18.79 billion, a 2.9 percent increase from US$18.26 billion registered in the same period last year.
The US has the highest share in remittances at 41.3%, followed by Singapore at 6.9%, Saudi Arabia at 5.9%, and Japan at 5%.
On the other hand, personal remittances — the sum of transfers sent in cash or in-kind via informal channels — reached $3.321 billion, up 2.5% from $3.24 billion year-on-year.
In a Viber message sent to reporters, Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said OFWs likely sent more money back to the Philippines to help their families cope with the still elevated inflation and high interest rates for debt payment.
The country’s headline inflation slowed to 4.7% in July from June’s 5.4%, marking the 16th straight month by which it exceeded the 2-4% BSP’s target range. (Marlon Luistro)
