Remittances rise 4.3% in August

Cash remittances went up by 4.3 percent in August 2022 to $2.72 billion from $2.61 billion a year ago, data from the Bangko Sentral ng Pilipinas show.

This brought total cash remittances that in the first eight months of the year to $20.99 billion, or 3.0 percent higher than $20.38 billion registered a year ago.

Remittances could peak in the fourth quarter and help temper the depreciation of the peso against the US dollar, according to analysts. The peso closed at a record low of 59 against the greenback on Oct. 17.

"The expansion in cash remittances in August 2022 was due to the growth in receipts from land-based and sea-based workers,” the BSP said in a statement.

It said the growth in cash remittances from the United States, Saudi Arabia, Singapore and Qatar contributed largely to the increase in remittances in the first eight months.

Personal remittances, which include non-cash items, reached $3.02 billion in August, also up by 4.4 percent from $2.89 billion posted in the same month last year.

This resulted in the cumulative personal remittances of $23.34 billion in the eight-month period, up 3 percent from $22.67 billion a year earlier.

“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,” the BSP said.

Remittances from OFWs are the fourth largest in the world after those of India, China and Mexico.

The Philippines is among the biggest suppliers of nurses around the world, accounting for at least 20 percent of the total globally. It is also the biggest supplier of seafarers worldwide, accounting for about 20 percent to 25 percent of the total.

Cash remittances hit a record $31.418 billion in 2021, up 5.1 percent from $29.903 billion in 2020.