BSP said for the month of August alone, remittances coursed through banks went up 28.3 percent to $953.83million. "Given the more than 20 percent year-on-year expansion that has prevailed since February, remittances are expected to remain strong going into the holiday season," Central Bank Governor Amando M. Tetangco Jr. said.
Tetangco reiterated that commercial banks’ aggressive marketing campaign encouraged overseas Filipino workers to utilize banking channels in transferring funds to their beneficiaries. Banks offer enhanced money transfer services, more remittance centers, tie-ups with foreign financial institutions and collection agents.
According to the preliminary data from the Philippine Overseas Employment Administration, the total number of deployed workers rose by 1.6 percent to 660, 726 during the period because of continuing efforts by the government in cooperation with the private sector to provide skills-enhancing and other development programs.
Classified by type of worker, deployment of sea-based workers rose by 9.7 percent to 165, 896, compensating for the minimal 0.8 percent decline in the deployment of land-based workers.
In the meantime the deployment of higher-paid overseas workers such as seafarers, service staff, professional/technical workers, production related workers also boosted the level of remittances during the eight-month period.
Tetangco said OFW remittances remain to be an important component of the national income accounts and the balance of payments. "For the first semester of 2005, remittances accounted for about 11 percent of nominal gross domestic product and about 18 percent of total current account receipts," he said.
The United States of America, Saudi Arabia, Italy, Japan, Hong Kong, United Kingdom, United Arab Emirates and Singapore are major sources of fund transfers by OFWs.
In the meantime the BSP sees money transfers from OFWs increasing this year after banks channel more of these cash through formal networks and show higher OFW monthly reports.
OFW remittances made through banks – the figure reported by the BSP every month, represents only 75 percent of total cash.
Efforts by the central bank and the whole banking system to get a larger share of remittances through formal channels are expected to increase total cash from 75 percent to around 80 or 85 percent.
