MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) said remittances rebounded and grew over seven percent to a five-month high in June, ending three consecutive months of decline as more displaced overseas Filipino workers were repatriated amid the COVID-19 pandemic.
Data released by the central bank showed personal remittances increased by 7.6 percent to $2.74 billion in June from $2.54 billion during the same month last year. This was the highest level for personal remittances since $2.94 billion in January.
“This trend is a reversal from three consecutive months of decline from their comparable levels last year,” the BSP said in a statement yesterday.
According to the central bank, the growth could be attributed to the 14.2 percent rise in remittances from land-based workers with work contracts of one year or more to $2.16 billion in June 2020 from $1.9 billion in June last year.
On the other hand, personal remittances mainly from sea-based workers fell by 13.1 percent to $515 million from $593 million.
For the first half of the year, the BSP reported personal remittances declined by 4.2 percent to $15.57 billion from $16.25 billion in the same period last year.
On the other hand, cash remittances coursed through banks went up by 7.7 percent to $2.46 billion in June from $2.29 billion in the same month last year. This was the highest level for cash remittances since hitting $2.65 billion in January.
The BSP said cash remittances in June were supported mainly by the money sent home by land-based workers since sea-based workers’ remittances continued to decline amid the repatriation of more seafarers due to the pandemic.
Cash remittances retreated by 4.2 percent to $14.02 billion from January to June this year compared to $14.64 billion in the same period last year.
Remittances of both land-based OFWs declined by four percent to $10.96 billion from $11.41 billion, while that of sea-based workers dropped by 5.4 percent to $3.06 billion from $3.23 billion.
According to the BSP, the US remained the major source of OFW remittances with a share of 39.7 percent, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, United Arab Emirates, Canada, Hong Kong, Qatar and Taiwan.
Remittances declined sharply from March to May due to the displacement and repatriation of more OFWs due to the coronavirus pandemic as well as the negative effects of the continued limited operating hours of some banks and institutions that provide money transfer services during the lockdown.
The more than 19 percent decline in remittances in May was the highest in almost two decades since the 30.1 percent plunge in January 2001.