By Tracy Cabrera
MALATE, Manila — Dollar remittances from overseas Filipinos (OFs) dropped by 13.7 percent to US$3.36 billion in January from December’s all-time high of US$3.9 billion, data from the Bangko Sentral ng Pilipinas (BSP) showed early this week.
This came even as personal remittances—which include cash sent through banks and informal channels—rose by 3.5 percent to US$3.36 billion from US$3.24 billion a year earlier.
However, cash remittances alone totaled US$3.02 billion, which is 3.5 percent higher than the US$2.92 billion recorded a year ago but 14.3 percent lower than December’s US$3.52 billion.
Accounting for the bulk of cash remittances were land-based workers, whose transfers reached US$2.41 billion, up from US$2.33 billion a year earlier. Remittances from sea-based workers also increased to about US$610 million from US$590 million.
Reyes Tacandong & Company senior adviser Jonathan Ravelas noted that the drop from December was mainly due to seasonal factors following the holiday surge. However, he said remittances remain higher than a year ago, indicating that incomes of overseas Filipino workers (OFWs) remain relatively stable.
“A weaker peso and steady overseas employment continue to support flows. Looking ahead, the Middle East conflict adds uncertainty and could cause month-to-month volatility unless it leads to widespread job losses or payment disruptions. Even then, full-year remittance growth should stay positive,” Ravelas said.
“For households, the priority is to use remittances wisely—rebuild savings, reduce debt, and be cautious with spending given ongoing global risks,” he added as advice.
Based on BSP monitoring, remittances from the United States accounted for the largest share at 40.2 percent, followed by Singapore (7.6 percent), Saudi Arabia (6.7 percent), Japan (5.8 percent), and the United Kingdom (4.6 percent).
Completing the top 10 were the United Arab Emirates (3.7 percent), Canada (3.0 percent), Taiwan (2.9 percent), Qatar (2.8 percent), and Hong Kong (2.5 percent).
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