Category : Press Release
Date : September 15, 2021
Agency : Bangko Sentral ng Pilipinas
Title : Personal Remittances Rise by 6.0 Percent in the First Seven Months of 2021
Article : Personal remittances from Overseas Filipinos (OFs) increased by 2.6 percent to US$3.167 billion in July 2021 from US$3.085 billion in the same month last year. This resulted in the cumulative remittances rising by 6.0 percent in the first seven months of 2021 to US$19.783 billion from US$18.658 billion recorded in the comparable period in 2020.

The growth in personal remittances in July was due to remittances sent by 1) land-based workers with work contracts of one year or more, which grew by 1.6 percent to US$2.506 billion from US$2.467 billion in the same period last year, and 2) sea- and land-based workers with work contracts of less than one year, which increased by 6.9 percent to US$595 million from US$557 million a year ago.

Of the personal remittances from OFs, cash remittances coursed through banks amounted to US$2.853 billion in July 2021, up by 2.5 percent year-on-year from US$2.783 billion registered last year. The increase in cash remittances was due to the growth in remittances from land-based workers and sea-based workers, which rose by 1.6 percent (to US$2.308 billion from US$2.273 billion) and 6.9 percent (to US$545 million from US$510 million), respectively. Cumulative cash remittances increased by 5.8 percent to US$17.771 billion in January to July 2021 from US$16.802 billion registered in the same period last year.

The growth in cash remittances in the first seven months of 2021 came mainly from the United States (US), Malaysia, and South Korea. Meanwhile, in terms of country sources, the US registered the highest share of overall remittances at 40.4 percent in January to July 2021, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, South Korea, Qatar, and Taiwan.1 The combined remittances from these top ten countries accounted for 78.6 percent of total cash remittances.
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1 There are some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the U.S. Also, remittances coursed through money couriers cannot be disaggregated by actual country source and are lodged under the country where the main offices are located, which, in many cases, is in the U.S. Therefore, the U.S. would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source. The countries are listed in order of their share of cash remittances, i.e., from highest to lowest.

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