BSP: Remittances fell to three-month low in February

Remittances from overseas Filipinos declined in February to hit the lowest level in three months, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday revealed.

Data from the central bank showed that cash remittances — money transfers coursed through banks — totaled $2.509 billion in February, up by 1.3% from $2.476 billion in February 2021, but lower than the $2.668 billion in January.

Personal remittances — the sum of transfers sent in cash or in-kind via informal channels — stood at $2.793 billion, up 1.2% from $2.759 billion last year, but lower than January’s $2.966 billion.

The BSP attributed the decline to the reimposition of restrictions in host countries of overseas Filipinos across the globe during the month.

Remittances from land-based workers with work contracts of at least a year jumped by 1.3% to $2.18 billion, and from sea and land-based workers with work contracts of less than a year by 1.5% to $547 million.

Year-to-date cash remittances were recorded up 1.9% to $5.177 billion, and personal remittances up 1.9% to $5.759 billion.

The United States registered the biggest share of overall remittances at 41.6% for the first two months of the year, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Taiwan, Qatar, and Malaysia.

The said countries accounted for 79.3% of total cash remittances in the January to February period.

According to Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort, inflows could increase moving forward as countries reopen.

“OFW remittances could improve further in the coming months that support the country’s economic recovery prospects from COVID-19, as the global economic recovery would still improve further as more countries, especially those that host large numbers of OFWs, around the world would reach herd immunity in the coming months, fundamentally entailing the creation of more job/employment opportunities for OFWs,” he said in a separate statement. — RSJ, GMA News