OFW remittances hit all-time high of US$38.3B

 

Filipinos overseas sent more money home as the value of the peso dipped

Cash remittances from Filipinos abroad hit a record high of $38.34 billion in 2024 on the back of a weak peso.

Bangko Sentral ng Pilipinas noted this marked a 3 percent increase from the US$37.21 billion recorded in 2023. 

A last-minute surge in remittances in December 2024 amounting to US$3.73 billion resulted in the biggest monthly cash inflow on record, and contributed significantly to the overall figure.

The BSP said that remittances accounted for approximately 8.3 percent of the country’s gross domestic product (GDP) and 7.4 percent of gross national income (GNI), underscoring their critical role in boosting the local economy.

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The bulk of the remittances were coursed through banks, amounting to US$34.49 billion, up from US$33.49 billion from the previous years. The rest of the remittances we sent through informal channels and non-cash transfers.

Cash remittances from the United States, Saudi Arabia, Singapore and the United Arab Emirates primarily fueled the surge in remittances last year, said the BSP. But this did not necessarily mean Filipinos in the USA have been sending the most money home.

BSP says much of the remittances were coursed through correspondent banks in the US

As explained by the BSP, the US is the main source of remittances because the “common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the US.”

In terms of regions, Asia recorded the second highest overall remittance of US$13.85 billion, which was just slightly less than that of the entire Americas, with an overall tally of US$15.38 billion.

Singapore’s total remittance of US$2.48 billion boosted the tally for Asia, followed by Japan with US$1.7 billion, Taiwan with US$904.9 million, and Hong Kong with US$801,831 million.

The biggest remitters in the Middle East were those in Saudi Arabia with US$2.22 billion and United Arab Emirates with US$1.52 billion.

The steady 3 per cent growth rate in remittances reflected the increase in demand and deployment of skilled Filipino workers.

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