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Remittances rise in June but YTD down for 3rd straight month

Remittances from overseas Filipinos rose in June, but not enough to offset the year-to-date decline, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

According to data released by the central bank, cash remittances or money transfers coursed through banks grew by 4.2% to $2.465 billion in June from $2.290 billion the same month last year.

Meanwhile, personal remittances—the sum of transfers sent in cash or in-kind via informal channels—rose by 7.6% to $2.737 billion.

"This trend is a reversal from three consecutive months of decline from their comparable levels last year," the BSP said in an accompanying statement.

The BSP attributed the growth to the 14.2% rise in remittances from land-based workers with work contracts of one year or more to $2.164 billion.

Meanwhile, remittances mainly from sea-based workers dropped by 13.1% to $515 million from $593 million previously.

"The continued drop in sea-based workers’ remittances was due to the repatriation of many sea-based workers amid the ongoing COVID-19 pandemic," the central bank said.

The latest figures brought the year-to-date cash remittances down by 4.2% to $14.019 billion, and the personal remittances down 4.2% to $15.573 billion.

This is the third consecutive month that year-to-date personal remittances fell, after dropping by 2.9% in April and 6.4% in May.

Year-to-date cash remittances also fell for the third consecutive month after dropping by 3.0% in April and 6.4% in May.

By country source, remittances for the six months recorded growths in the United States, Japan, Singapore, Oman, and Taiwan.

Meanwhile, declines were reported in remittances from Saudi Arabia, UAE, Kuwait, Germany, and the United Kingdom.

The highest share to total remittances came from the United States which accounted for 39.7%, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Hong Kong, Qatar, and Taiwan.

"The combined remittances from these countries accounted for 78.9% of total cash remittances," the BSP said. — Jon Viktor D. Cabuenas/BM, GMA News