Barclays estimates 10% higher remittances in Jan

MANILA, Philippines - The level of remittances from Filipinos abroad is expected to have expanded by as much as 10 percent in January from year-ago levels, UK-based investment bank Barclays said.

“January is seasonally weak month for remittances on an month-on-month basis; however, we expect Typhoon Haiyan-related flows to provide some offset,” the bank said in a research note.

Money sent home by Filipinos abroad summed up to $1.7 billion in January last year, Bangko Sentral ng Pilipinas (BSP) data showed. Bulk or $1.3 billion of the funds were sent by land-based workers, while the remaining $412 million were from sea-based workers.

The United States, Canada, Saudi Arabia, United Kingdom, United Arab Emirates, Singapore and Japan were the primary sources of remittances.

Central bank data showed that the level of remittances historically falls in January from a peak in December.

However, following Typhoon Haiyan (local name: Yolanda), which struck the Visayas and nearby provinces in November, Filipinos abroad are seen sending more so their families could rebuild their homes and businesses.

The super typhoon literally flattened towns and wiped out farmlands, displacing thousands of families. Government estimates showed the typhoon killed 6,201 individuals and destroyed P36.69 billion worth of infrastructure and agriculture crops.

The central bank will release official January 2013 remittances data tomorrow.

The country saw cash remittances climb 6.4 percent to $22.76 billion in 2013, the highest annual level ever recorded. Such also surpassed the BSP’s five-percent assumption for the year.

The central bank has said the record-high remittances was driven by a strong demand for Filipinos abroad, particularly in the Middle East. Based on data from the Philippine Overseas Employment Administration, 1.8 million Filipino workers were deployed abroad in 2013.

At the same time, the continued expansion of financial service providers abroad to facilitate Filipinos’ remittances contributed to the growth of money sent home to the Philippines.