BSP sees steady remittance growth

MANILA, Philippines — Remittances are expected to continue growing despite the setbacks arising from the ban on deployment to Kuwait as well as the imposition of higher fees on remittances, the Bangko Sentral ng Pilipinas (BSP) said yesterday.

BSP Deputy Governor Diwa Guinigundo said remittances from overseas Filipinos are expected to expand by four percent this year, continuing to be a major source of foreign exchange for the country.

Guinigundo said the decision of Malacañang to ban the deployment of Filipino workers to Kuwait would have minimal impact as the cash remittances from Kuwait account for only about three percent of the total.

“On the ban on deployment of OFWs to Kuwait, the impact may not be significant. Prospective workers may still be deployed to other countries with demand for Filipino workers,” he said.

Last Jan. 19, Labor Secretary Silvestre Bello III issued Administrative Order 25 ordering the Philippine Overseas Employment Association (POEA) to stop the processing and issuing of overseas employment certificates to all Kuwait-bound workers as President Duterte cited the cases of sexual abuse of Filipino domestic workers.

There are about 276,000 Filipinos working in Kuwait.

Latest data from the central bank showed cash remittance coursed through banks climbed four percent to $25.32 billion from January to November last year compared to $24.34 billion in the same period in 2016.

On the other hand, personal remittances including house-to-household as well as capital transfers rose 5.1 percent to $28.24 billion from $26.88 billion.

Amid the steady growth, Guinigundo said the amount of personal and cash remittances from Filipinos abroad would continue to exceed receipts from the business process outsourcing (BPO) sector.

Revenues of the BPO sector grew 8.5 percent to $16.9 billion in the first nine months of last year and likely ended 2017 with $22 billion, while remittances amounted to $25.32 billion from January to November last year.