By Luz Wendy T. Noble, Reporter
MONEY SENT HOME by abroad Filipino employees (OFWs) reached a seven-month excessive in July, reflecting the improved employment state of affairs in main economies which have begun recovering from the coronavirus pandemic.
Money remittances rose 2.5% to $2.853 billion in July from $2.783 billion a yr earlier, primarily based on knowledge launched by the Bangko Sentral ng Pilipinas (BSP) on Wednesday.
July remittance inflows are on the highest stage because the $2.89 billion in December 2020.
Money remittances likewise elevated 8.1% from the $2.638 billion in June.
“The rise in money remittances was as a result of development in remittances from land-based employees and sea-based employees, which rose by 1.6% (to $2.308 billion from $2.273 billion) and 6.9% (to $545 million from $510 million), respectively,” the BSP stated.
For the primary seven months of 2021, money remittances stood at $17.771 billion, up 5.8% from the $16.802 billion in the identical interval of 2020.
The BSP stated remittances from OFWs in the US, Malaysia, and South Korea helped increase the year-to-date tally.
By international locations, the US remains to be the most important remittance supply, adopted by Singapore, Saudi Arabia, Japan, the UK, the United Arab Emirates, Canada, South Korea, Qatar, and Taiwan. Collectively, inflows from these international locations made up 78.6% of the whole for the interval.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion stated the remittance development may be attributed to the development within the labor markets overseas as extra economies reopened.
“Evidently numerous those that have been repatriated on the early a part of the pandemic again in 2020 might have already returned and our OFWs are very conscious of the necessity to ship many again residence in all probability for well being help to household,” he stated in an e-mail.
The “extra favorable” change fee additionally helped increase remittance despatched again residence, alongside enhancing financial actions, Safety Financial institution Corp. Chief Economist Robert Dan J. Roces stated in a Viber message.
The peso has been comparatively weaker versus the greenback within the earlier months, shifting across the P49 to P50 vary. At its shut of P49.97 per greenback on July 30, the peso depreciated by 94.7 centavos or by 1.9% from its 48.023 end on Dec. 29, 2020.
In the meantime, private remittances, which embody inflows in variety, went up 2.6% to $3.167 billion from $3.085 billion in July 2020.
12 months to this point, private remittances elevated 6% to $19.783 billion from $18.658 billion in the identical interval of 2020.
Mr. Asuncion is bullish that remittances will stay resilient forward of the vacation season.
Alternatively, Mr. Roces stated the unfold of the Delta variant poses dangers to the outlook because the reimposition of lockdown measures might result in extra OFWs shedding their jobs.
“However remittance inflows stay essential, particularly for recipient households and to the economic system, typically, because it stands to get supported by way of consumption,” Mr. Roces stated.
Remittance inflows help family spending, which makes up about 70% of the economic system.
The BSP expects money remittances to rebound with a 4% development this yr after declining by 0.8% in 2020.