- Money sent home by overseas Filipinos fell to a three-month low in August, with cash remittances reaching $3.03 billion as the peso weakened and global uncertainties continued to weigh on overseas workers.
- Data from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances coursed through banks grew 1.9% year on year in August, but remained below July's level. The last time monthly inflows were lower was in May, when remittances stood at $2.7 billion.
- From January to August, cash remittances totaled $23.42 billion, up 2.2% from the same period last year. The BSP expects inflows to reach $36.6 billion for the full year, equivalent to projected growth of 2.7%.
Money sent home by overseas Filipinos fell to a three-month low in August, with cash remittances reaching $3.03 billion as the peso weakened and global uncertainties continued to weigh on overseas workers.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances coursed through banks grew 1.9% year on year in August, but remained below July's level. The last time monthly inflows were lower was in May, when remittances stood at $2.7 billion.
From January to August, cash remittances totaled $23.42 billion, up 2.2% from the same period last year. The BSP expects inflows to reach $36.6 billion for the full year, equivalent to projected growth of 2.7%.
A weaker peso may affect how much OFWs send
The August figures came as the peso weakened to the ₱63-per-dollar level for the first time, amid expectations of higher US interest rates.
A weaker peso means dollars sent home can convert into more pesos for recipients. However, this may also affect how much overseas Filipinos choose to send, since families can receive more pesos without an increase in the dollar amount remitted.
The impact on remittances will also depend on overseas workers' earnings and expenses, including the cost of living in their host countries.
Global risks weigh on overseas workers
Rising living costs and geopolitical tensions, including the prolonged US-Iran conflict, could put pressure on migrants' budgets and their ability to send money home. Uncertainty in the Middle East may also affect employment and deployment prospects, particularly in a region that remains a major source of Philippine remittances.
Despite the slower monthly inflow, remittances remain an important source of household income and domestic economic activity, helping families cover daily expenses as inflation puts pressure on budgets.
The United States remained the largest source of remittances in August, followed by Singapore and Saudi Arabia, based on reported transactions by origin. The BSP has noted that the US share may partly reflect the concentration of remitting and correspondent banks there.