Remittances shrink to 5-month low in September

Personal remittances from overseas Filipinos shrank to the lowest level in five months in September as global correspondent banks decided to close shop.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed personal remittances—transfers in cash or in kind sent via informal channels—fell by 7 percent to $2.442 billion in September.

This compares with $2.800 billion in August and $2.626 billion in September 2016.

Cash remittances or money transfers coursed through banks dropped to $2.186 billion versus $2.499 billion in August and $2.383 billion in September 2016.

"There are reports that a number of global correspondent banks have closed their service facilities on money service business (MSB), reflective of the increasing global trend to reduce correspondent banking relationships and focus more on home market," the BSP said.

"This may have partly affected remittances flows during the month," it said.

The biggest declines in money transfers were in Qatar, Kuwait, Australia, and Saudi Arabia.

"For Saudi Arabia, the decline in remittances could partly be the results of the continued repatriation of OF workers under the Saudi Arabian Amnesty Program which started last March 2017," the central bank said.

In September, Saudi Arabia extended an amnesty program for undocumented migrants.

The remittances in September brought personal remittances to $23.164 billion in the first nine months of the year and cash remittances to $20.781 billion. — VDS, GMA News