OFW remittances in January slowest in 2 years - BSP

(Updated 10:52) Money sent home by overseas Filipino workers grew by 5.4 percent year-on-year in January, the slowest pace in two years and two months since November 2009 when money transfers from abroad went up by 5.1 percent, the Bangko Sentral ng Pilipinas said Thursday.   The money transfers grew significantly slower last January from 7.6 percent a year earlier and from 8.5 percent in the first month of 2010, according to central bank data.   In absolute terms, however, remittances increased by $81 million to $1.557 billion in January from $1.476 billion a year earlier. In January 2010, Filipinos abroad sent home $1.372 billion.   “Sustained demand for professional and skilled Filipino workers underpinned the steady flow of remittances,” BSP Governor Amando Tetangco Jr. said.   Tetangco noted the rate of increase remittances by sea-based Filipino workers jumped 19.8 percent. In contrast, remittances of land-based workers grew by only 1.6 percent.   Sea-based workers transferred $369 million, while land-based OFWs remitted $1.2 billion.   Month-on-month, remittances last January dropped $242.6 million from $1.779 billion in December 2011.   BSP historical data show a seasonal trend in money transfers, usually dipping in January before rising around May or June, then tapering a bit in the third quarter before picking up again around October in the run-up to the Christmas holidays.   Stocks-related currency flows   Profit-taking in Philippine stocks and lower yields on government securities caused a surge in portfolio investment outflows to $1.8 billion in February, the Bangko Sentral also reported Thursday.   The portfolio withdrawals eclipsed the $1.5 billion of foreign funds reeled in by the equities market.   Holding firms, banks, property developers, telecommunication companies, and utilities gained the most from the foreign investments in shares listed on the Philippine Stock Exchange.   “Transactions for the first two months of the year, however, continued to yield net inflows of $342 million, albeit 54.5 percent lower than what was recorded in 2011,” the BSP said. — ELR/VS, GMA News