Cash remittances from overseas Filipinos climbed by 3.2 percent to $2.98 billion in August, reflecting sustained inflows from both land- and sea-based workers despite global economic headwinds, the Bangko Sentral ng Pilipinas (BSP) reported yesterday. The latest figure was higher than the $2.89 billion posted in August 2024, as remittances from land-based workers rose by three percent to $2.35 billion, while those from sea-based workers grew by 3.8 percent to $626 million.
On a cumulative basis, cash remittances amounted to $22.91 billion from January to August, up by 3.1 percent from $22.22 billion in the same period last year.
The United States remained the top source of remittances, followed by Singapore and Saudi Arabia. The BSP noted, however, that inflows attributed to the US also reflect funds coursed through correspondent banks located there.
Meanwhile, personal remittances, which include cash sent through banks, informal channels and remittances in kind, likewise increased by 3.2 percent to $3.31 billion in August from $3.2 billion a year earlier.
Year-to-date, personal remittances grew by 3.1 percent to $25.51 billion from $24.74 billion in the same period of 2024.
SM Investments Corp. chief economist Robert Dan Roces said the modest increase indicates continued resilience in remittance flows despite external challenges.
‘The 3.2 percent year-on-year increase in cash remittances in August indicates a modest pick-up relative to July’s three percent growth,’ Roces said.
‘This suggests that remittance flows have some resilience despite global headwinds and reflects, in part, a lower comparative base or mild fluctuations in monthly flows,’ he said.
According to Roces, the peso’s depreciation may have encouraged higher inflows, as overseas Filipinos take advantage of the exchange rate to maximize peso value for their families.
‘The weaker peso (and expectation thereof) tends to encourage higher remittances in dollar terms, as recipients gain more local-currency value,’ Roces noted. ‘Evidence from BSP studies have highlighted the positive role of exchange rate depreciation as a driver of remittances.’
Looking ahead, Roces said remittance growth may further strengthen toward year-end, when overseas Filipinos typically send more money for holiday spending.
‘The (September to December) months, when remittances traditionally rise, may buoy the remainder of the year,’ he added.
Remittances remain a vital source of household income and foreign exchange for the country, supporting domestic consumption and helping cushion the peso against external shocks.
The steady inflows also continue to underpin the Philippines’ external payments position amid fluctuating global demand and interest rate movements.
The BSP expects cash remittances to grow by three percent to $35.5 billion this year and by three percent to $36.6 billion next year.