By Luisa Maria Jacinta C. Jocson, A reporter
MONEY SENT HOME at the endoverseas Filipino workers (OFW) rose 3.3% year-on-year in November amid a weakening of the peso against the US dollar, the Bangko Sentral ng Pilipinas (BSP) said.
Data from the central bank showed that remittances grew by 3.3% to $2.81 billion in November from $2.72 billion in the same month last year.
However, the amount of money sent in November was the lowest in six months or since the $2.58 billion that was sent in May.
Month-on-month, remittances fell 8.7% from $3.08 billion sent in October.
BSP data showed remittances to land workers jumped 3.9% year-on-year to $2.22 billion in November, while remittances from seafarers rose 1% to $585.505 million.
Meanwhile, personal remittances, which include income, rose 3.5% to $3.12 billion in November from $3.02 billion a year ago.
Earnings from workers with contracts of one year or more rose 3.7% to $2.4 billion, while remittances from workers with contracts of less than a year increased 1.7% to $650 million.
11-MONTH PERIOD
In the January to November period, remittances rose 3% to $31.11 billion from $30.21 billion a year ago.
“Remittances are expected to increase by 3% in the full year of 2024,” the central bank said.
Remittances at the end of November accounted for 90.2% of the BSP’s full-year average of $34.5 billion.
“Increasing remittances from the United States, Saudi Arabia, Singapore, and the United Arab Emirates (UAE) contributed significantly to the increase in remittances in January-November 2024,” the central bank said.
“In terms of country sources, the US accounted for the largest share of exports in January-November 2024, followed by Singapore and Saudi Arabia.”
The United States accounted for 40.9% of total remittances over the 11-month period, followed by Singapore (7.1%), Saudi Arabia (6.3%), Japan (5%) and the United Kingdom (4.7%).
Other top sources of remittances were UAE (4.4%), Canada (3.5%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.5%).
Remittances also grew 3% to $34.61 billion as of the end of November from $33.59 billion a year ago.
Analysts say the recent depreciation of the peso is likely to affect cash flow during the month.
“In the month of November, the exchange rate with the US dollar was generally at the level of P58-59 compared to the levels of P56-58 last month which somewhat increased the peso equivalent of OFW remittances,” Rizal Commercial Banking Corp. Chief Economist. L. Ricafort said.
Mr. Ricafort said this will “reduce the remittance of OFWs in US dollars/other foreign currencies to pay the same amount in pesos.”
The peso closed at P58.62 against the dollar at the end of November, weakening by 52 cents from its high of P58.10 at the end of October.
The local unit also fell to a record low of P59-a-dollar twice a month.
“The peso has experienced a devaluation, indicating more pesos for the same foreign currency,” said Leonardo A. Lanzona, professor of economics at Ateneo de Manila University.
“Remittances are mostly used by recipients to meet their basic needs. The sender may have realized that there is no need for him to send more money to meet the needs of his family here,” he added.
Mr. Ricafort also added that the high cost of living in host countries for OFWs can reduce remittances.
In December, Mr. Ricafort said remittances may increase during the holidays.
“The money sent by OFWs may increase in December due to the expected increase in the season during the Christmas and New Year holidays, which is the most money spent by families in a normal year,” he said.
The central bank expects remittances to grow by 3% in 2024 and 2025.
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