Remittances Up 3.1% In Jan-May This Year

Cash remittances reached $12.98 billion in the first five months of 2023, up by 3.1 percent from the same period last year of $12.59 billion, based on Bangko Sentral ng Pilipinas (BSP) data.

Photo Insert: Since most of the correspondent banks that remittance centers use are in the US, it would seem that the US is a main source of remittances.

For the month of May only, cash remittances which are transferred through the banking system, increased by 2.8 percent to $2.49 billion compared to $2.42 billion in May 2022.

The BSP said recently that for the month of May, land-based workers remitted $1.99 billion through the banks, 2.9 percent higher than the same period last year of $1.93 billion.

Sea-based workers, meanwhile, remitted $510 million, up by 2.4 percent from $499 million in 2022.

On a year-to-date basis, land-based workers remitted $10.26 billion, up 3.4 percent from the same period last year of $9.93 billion. Sea-based workers also sent home $2.72 billion or 2.1 percent higher than end-May 2022’s $2.67 billion.

The BSP reported that personal remittances for the January to May period totaled $14.46 billion, up by 3.1 percent year-on-year or from $14.02 billion.

Personal remittances are computed as the sum of an overseas Filipino’s net compensation and include personal transfers and capital transfers between households. These are not captured by the banking system.

For May alone, personal remittances reached $2.78 billion which was 2.9 percent more than the same period last year of $2.70 billion.

The bulk of cash remittances originated from Filipinos working in the US which contributed 41%, while Singapore and Saudi Arabia accounted for 7.1% and six percent of the total, respectively.

Since most of the correspondent banks that remittance centers use are in the US, it would seem that the US is a main source of remittances. The BSP records both cash remittances and personal remittances.

Cash remittances are the basis for BSP’s projection of a three percent growth in remittances for 2023.

“The growth in cash remittances from the US, Singapore, and Saudi Arabia contributed mainly to the increase in remittances in the first five months of 2023. Meanwhile, in terms of country sources, the US posted the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia, and Japan,” said the BSP.

Last year, cash remittances reached $35.56 billion, up 3.6 percent from 2021’s $31.42 billion.

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