OFW remittances up in May – BSP

The amount of money sent home by Overseas Filipino Workers (OFW) rose to its highest level in two months in May, according to data released Friday by Bangko Sentral ng Pilipinas (BSP).

Personal remittances, cash or family-to-family transfers, reached $2.70 billion in the fifth month of 2022, up 1.27% from $2.67 billion in April and up 1.99% than $2.65 billion in May 2021. With $2.88 billion sent in March this year, it was the largest amount of OFs ever sent.

The year-over-year increase in May was due to remittances from land-based workers on contracts of one year or more, and from offshore and land-based workers on short-term contracts.

According to the latest data, total remittances for the first five months of the year were $14.02 billion, up 2.5% from the $13.68 billion from January to May 2021.

Meanwhile, remittances totaled $2.42 billion in May, up 1.25 percent from the previous month and 1.80 percent from $2.38 billion a year earlier.

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The central bank said the year-over-year rise in April was “driven by remittances from land workers on one-year or longer contracts, and from maritime and land workers on short-term contracts.”

From January to May 2022, remittances rose 2.5% to $12.59 billion from $12.28 billion the previous year.

Growth in remittances from the United States, Saudi Arabia, Japan, Qatar and Singapore contributed significantly to remittance growth in the first five months of 2022, according to BSP.

Bangko Sentral maintained its forecast for a 4 percent growth in remittances this year, noting the sector’s long-term growth trend, increased deployment as a result of employers’ renewed interest in hiring OFWs, and growing use of digital financial services among OFWs and their dependents.