PhilPass transactions down in Q2

MANILA, Philippines - Volume of transaction that passed through the Bangko Sentral ng Pilipinas’ payments and settlements system declined in the second quarter of the year.

According to BSP data, the number of transactions at the Philippine Payments and Settlements System (PhilPaSS) decreased by 5.8 percent to 313,895 in the second quarter of the year from 333,351 in the first quarter.

PhilPaSS is an automated facility owned and operated by the BSP.

Uses of the system include the settlement of overseas Filipinos’ remittances, fund transfers and loan transaction between banks, sale and purchase of government securities, and even foreign exchange-denominated transactions.

The central bank traced the decline to the quarter-on-quarter reduction in the number of transactions particularly interbank transactions, interbank sale and purchase of foreign currency via payment-versus-payment, among others.

Transactions involving remittances from Filipinos living and working abroad rose by two percent to 99,793 in the second quarter from 97,838.

Likewise, value of transactions fell 12.6 percent to P83.97 trillion from April to June compared to P96.13 trillion from January to March.

Value of transactions involving cash remittances from overseas Filipinos jumped 17 percent to P5.02 billion in the second quarter from P4.29 billion in the first quarter.

The central bank traced the decline to the reduction in the value of interbank transactions, repurchase facility, reverse repurchase, and Special Deposit Account maturities.

The BSP said it remains proactive in ensuring the credibility of the payments and settlements system with the continued enhancement of its processes in accordance with international best practices and development of the necessary infrastructure through the operation of the PhilPaSS.