Remittances jump to $3.95b

Manila Standard

REMITTANCES from Filipinos rose 13.2 percent to $3.95 billion in the first quarter as more of them left for jobs abroad, the central bank said yesterday.

They sent home $1.43 billion in March alone, a 9.42-percent increase from the same month last year, it said.

Citing preliminary data from the Philippine Overseas Employment Administration, the central bank said the deployment of Filipinos abroad rose 13.6 percent to 263,129 in the quarter to March.

The number of land-based workers grew 11.7 percent to 200,398, and the number of sea-based workers expanded 20.1 percent to 62,731.

The increase in the number of workers overseas aside, the central bank attributed the rise in remittances to the growing number of highly skilled Filipinos drawing top salaries abroad, as well as the growing efficiency of banks and financial institutions in handling remittances.

It said the increasing number of tie-ups between domestic banks and foreign banks had also made remitting money here easier and faster.

The bulk of the money being remitted to the Philippines comes from the United States, Saudi Arabia, the United Kingdom, Italy, the United Arab Emirates, Canada, Japan, Singapore and Hong Kong.

Last year, remittances coursed through the banking system rose 13.23 percent to $14.45 billion against $12.76 billion in 2006.

Remittances allow their beneficiaries to spend more, and the government to stabilize the peso against other currencies.

And remittances took the current account to a surplus despite a deficit in the merchandise trade, bringing last year’s balance of payments to plus $8.6 billion.

The central bank expects a surplus of $3.5 billion this year, while the International Monetary Fund predicts a higher $4.6 billion.

Eileen A. Mencias