Record surge in remittances seen as rebuilding continues

MANILA, Philippines - The record-high volume of cash remittances posted in October is expected to be sustained in the remaining months of the year and early next year, a Bangko Sentral ng Pilipinas official said yesterday.

BSP Deputy Governor Diwa C. Guinigundo told reporters Filipinos abroad may send more money home on the back of the Christmas season and due to rebuilding efforts following recent calamities.

“Natural impulse of relatives is to send more money. (After Super Typhoon)Yolanda, we told the public that we expect remittances to grow more because of these calamities,” Guinigundo said.

“We expect over the next months, $2 billion every month (will be remitted),” he added.

Cash remittances surged to $2.062 billion in October, the highest level ever recorded for a month. The central bank attributed the increasing level of remittances to sustained demand for Filipinos abroad.

“We expect this will continue in November and December as some OFWs (overseas Filipino workers) will provide additional funds for their families affected by the typhoon,” Guinigundo noted.

In the 10 months to October, remittances already grew by six percent to $18.542 billion from the $17.499 billion recorded in the same period last year.

Most of the funds were from the United States, Saudi Arabia, the United Kingdom, the United Arab Emirates, Singapore, Canada and Japan, the BSP said.

The central bank expects remittances to increase five percent from the 2012 level of $21.391 billion.