Remittances climb to 7-month high in July

MANILA, Philippines — Cash remittances from overseas Filipino workers (OFWs) climbed to a seven-month high of $3.2 billion in July, as families tapped more funds for the school season and a weaker peso encouraged higher inflows.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that the July inflow grew by three percent from $3.08 billion in the same month last year, lifted by steady contributions from both land- and sea-based workers.

Land-based Filipinos sent home $2.59 billion, three percent higher than the $2.52 billion a year ago, while sea-based workers remitted $585 million, rising by 3.1 percent from $570 million.

The latest figure was also the highest monthly inflow in seven months or since the $3.38 billion recorded in December last year.

For January to July, cash remittances coursed through banks totaled $19.93 billion, rising by 3.1 percent from $19.33 billion in the same period in 2024.

“The July spike is no accident,” said Jonathan Ravelas, senior adviser at Reyes, Tacandong & Co.

“Three big drivers boosted inflows: the school season, when families need cash for tuition and supplies; the stronger dollar, which encouraged OFWs to send more amid a weaker peso; and global job stability, especially for sea-based workers who’ve seen better deployment this year,” Ravelas said.

According to Ravelas, remittances remain a backbone of household spending, underscoring how overseas Filipinos continue to quietly but consistently power the domestic economy.

Personal remittances, which include cash transfers, remittances in kind and transfers via informal channels, also rose to $3.53 billion in July, up 3.1 percent year-on-year.

This brought cumulative personal remittances for January to July to $22.21 billion, up by 3.1 percent from $21.53 billion in the same period last year.

The United States remained the largest source of remittances with 40.3 percent of the total, followed by Singapore (7.1 percent), Saudi Arabia (6.2 percent), Japan (five percent) and the United Kingdom (4.8 percent).

The United Arab Emirates, Canada, Qatar, Taiwan and South Korea were also among the top 10 country sources of remittances.

Remittances are a key driver of domestic consumption and a major source of foreign exchange for the Philippines, supporting the peso and the country’s balance of payments.