By Tracy Cabrera
DOLLAR remittances from overseas Filipinos (OFs) declined by 13.7 percent to US$3.36 billion in January from December’s all-time high of US$3.9 billion, data from the Bangko Sentral ng Pilipinas (BSP) showed early this week.
This came despite personal remittances that include cash sent through banks and informal channels, rising by 3.5 percent to $3.36 billion from $3.24 billion in the previous year.
However, cash remittances alone totaled US$3.02 billion, which is 3.5 percent higher than a year ago at US$2.92 billion but 14.3-percent lower compared to December’s US$3.52 billion.
Accounting for the bulk of cash remittances at US$2.41 billion, up from $2.33 billion a year earlier, were from land-based workers while those sent by sea-based workers likewise increased to approximately US$610 million from US$590 million.
Reyes Tacandong & Company senior adviser Jonathan Ravelas noted the drop from December as mainly due to seasonal factors after the holiday surge, but he cited that remittances are still higher than a year ago, showing that incomes of overseas Filipino workers (OFWs) remain relatively stable.
“A weaker peso and steady overseas employment continue to support flows. (But) looking ahead, the Middle East conflict adds uncertainty and could cause month‑to‑month volatility, (. . .) unless it leads to widespread job losses or payment disruptions. (Even then), full‑year remittance growth should stay positive,” Ravelas pointed out.
“For households, the priority is to use remittances wisely—rebuild savings, reduce debt and be cautious with spending given ongoing global risks,” he added as advise.
Based on BSP monitoring, remittances from the United States continued to account for the biggest share with 40.2 percent, followed by Singapore at 7.6 percent; Saudi Arabia, 6.7 percent; Japan, 5.8 percent; and the United Kingdom, 4.6 percent.
Following close to the top 10 were the United Arab Emirates at 3.7 percent), Canada at 3.0 percent, Taiwan at 2.9 percent, Qatar at 2.8 percent and Hong Kong at 2.5 percent.
