Remittances
currency) in these countries, the lower US dollar value of remittances in April could be partly due to the depreciation of major host countries’ currencies visà-vis the US dollar, such as the Singaporean dollar, Australian dollar, pound sterling and the euro,” the BSP explained.
Furthermore, the fall in remittances could be attributed to the drop in the number of banking days in April 2017, compared with the same month a year ago, the BSP said.
Cash remittances coming from the United States, Saudi Arabia, United Arab Emirates (UAE), Singapore, Japan, UK, Qatar, Kuwait, Hong Kong, and Canada comprised about 80 percent of total months of 2017, it added.
For the first four months of 2017, cash remittances recorded 4.2 percent growth from the level posted in the same period a year ago, reaching $9.0 billion.
Still resilient
“We are not unduly concerned right now because given the peak OFW remittances registered in March 2017, the drop in April - mittances having been remitted earlier than usual, in March,” said Metrobank Research head Marc Bautista, referring to the record $2.91 billion remittances posted in the third month of the year.
Bautista, however, explained that it would be worrisome if the peak in - ed savings being repatriated because OFWs were being sent home, which would imply that regular monthly
“That remains to be seen, however. Meantime, we believe that the [4 percent] BSP [growth] forecast for the year will still be likely hit $2 billion-plus level per month for the rest of the year,” he said.
IHS Markit Asia Pacific chief economist Rajiv Biswas believes that with global economic growth gradually improving, “overall worker remittance flows from overseas Filipino workers are expected to remain resilient during the remainder of 2017.”
Singaporean banking giant DBS predicts that at the current pace, total remittances are going to reach a new record of $28 billion this year.
“This is important on two fronts. continue to boost private consumption growth. Second, given this year, the growth in foreign remittances will be important to check,” it said.