![\"\"](\"/wp-content/uploads/2017/05/Foreign-exchange-remittance-center.jpg\")
LONDON \u2014 Larger-than-expected money transfers from migrants overseas have provided a tonic for several sickly economies during the coronavirus crisis, but the outlook for such flows remains fraught with uncertainty even as vaccines are rolled out.
\nMexico, El Salvador, Kenya, Pakistan, Bangladesh, the Philippines and Sri Lanka are among those enjoying resurgent flows in recent months, helping them narrow current account gaps, stabilize currencies and meet any overseas debt payments.
\nSuch countries have led a surprise recovery in remittances in the second half of 2020, as the slowdown in flows amid the pandemic proved less severe than initially feared.
\nMigrants have cushioned the pandemic\u2019s economic blow, drawing down savings to help out families back home and sending more money via official channels rather than in person, while benefiting from access to state support, including cash handouts, in host countries such as the United States.
\nWhile vaccinations should help economic activity to return to normal, the risk of mounting job losses as government support unwinds mean such flows, a source of FX revenue and gross domestic product for many emerging countries, may falter in 2021.
\nUnemployment in wealthy G20 countries, home to a sizeable proportion of migrants, is expected to reach 10% by the end of 2020 and remain above levels at the end of 2019 next year, the Organization for Economic Cooperation and Development (OECD) has forecast.
\n\u201cCountries like Pakistan, Bangladesh and Philippines, which receive about 9% or 10% of GDP from remittances, have a window of opportunity to invest these flows into productive areas of the economy to help their recoveries because at some point this window may close as people may lose their jobs or decide to go back to their home countries,\u201d said Emre Akcakmak, portfolio manager at East Capital, a specialist in emerging and frontier markets.
\nRecord flows to Pakistan have helped it accumulate a $1.2-billion current account surplus at a time when it is paying back a $3-billion loan to Saudi Arabia.
\nStrong remittances and subdued imports should help Sri Lanka to service its July Eurobond maturity, said Tellimer economist Patrick Curran. Beset with surging debt and collapsing tourism revenues, the island nation has been assessed at growing risk of default by rating agencies.
\nMexico\u2019s currency depreciation has helped put the country on course for its largest current account surplus in more than 30 years, Goldman Sachs estimates.
\nDEEPER, PROLONGED
\nRemittances are relatively stable compared with other financial flows. That includes foreign direct investment, which remittances overtook in 2019. Meanwhile portfolio flows, set to surge in the last quarter of 2020 two their highest since the first quarter of 2013, are prone to sharp reversals as they did during the taper tantrum.
But the outlook is uncertain.
\nThe World Bank in October revised its 2020 estimated drop in flows to low- and middle-income countries to 7% from 19.7% previously, but predicted a further 7.5% dip next year. That is a deeper and longer downturn than during the global financial crisis, when flows shrank 4.9% in 2009, before rebounding 11.8% a year later.
\nFor the first time in recent history, the stock of international migrants is expected to fall in 2020. Those remaining in host countries face an uncertain future.
\nIn the United States, in a reversal of pre-pandemic trends, the unemployment rate for immigrants was now 2 percentage points higher than the rate for natives, according to the OECD.
\n\u201cWe are expecting a strong recovery in global growth as vaccination is rolled out and we begin to see a normalization in economic activity. This should support global remittances,\u201d said Farouk Soussa, senior economist at Goldman Sachs.
\n\u201cOn the other hand, we think there have been a number of one-off factors that have held up remittances this year, and these may not come into play next year.\u201d
\nThe Gulf, accounting for around 40% of total outward remittances, may see a push to replace foreign workers with locals in 2021, Soussa said.
\nThat is bad news for countries that rely on transfers from the Gulf, such as Bangladesh, Philippines, Egypt and Lebanon. Lebanon\u2019s financial crisis and dwindling economy mean remittances are seen rising to more than a third of GDP in 2020.
\nOne hope is a recovery in exports and tourism, the other big money maker and hard currency source for emerging economies. Yet while the vaccine rollout should help, the outlook is uncertain. \u2014 Reuters
\n", "content_text": "LONDON \u2014 Larger-than-expected money transfers from migrants overseas have provided a tonic for several sickly economies during the coronavirus crisis, but the outlook for such flows remains fraught with uncertainty even as vaccines are rolled out.\nMexico, El Salvador, Kenya, Pakistan, Bangladesh, the Philippines and Sri Lanka are among those enjoying resurgent flows in recent months, helping them narrow current account gaps, stabilize currencies and meet any overseas debt payments.\nSuch countries have led a surprise recovery in remittances in the second half of 2020, as the slowdown in flows amid the pandemic proved less severe than initially feared.\nMigrants have cushioned the pandemic\u2019s economic blow, drawing down savings to help out families back home and sending more money via official channels rather than in person, while benefiting from access to state support, including cash handouts, in host countries such as the United States.\nWhile vaccinations should help economic activity to return to normal, the risk of mounting job losses as government support unwinds mean such flows, a source of FX revenue and gross domestic product for many emerging countries, may falter in 2021.\nUnemployment in wealthy G20 countries, home to a sizeable proportion of migrants, is expected to reach 10% by the end of 2020 and remain above levels at the end of 2019 next year, the Organization for Economic Cooperation and Development (OECD) has forecast.\n\u201cCountries like Pakistan, Bangladesh and Philippines, which receive about 9% or 10% of GDP from remittances, have a window of opportunity to invest these flows into productive areas of the economy to help their recoveries because at some point this window may close as people may lose their jobs or decide to go back to their home countries,\u201d said Emre Akcakmak, portfolio manager at East Capital, a specialist in emerging and frontier markets.\nRecord flows to Pakistan have helped it accumulate a $1.2-billion current account surplus at a time when it is paying back a $3-billion loan to Saudi Arabia.\nStrong remittances and subdued imports should help Sri Lanka to service its July Eurobond maturity, said Tellimer economist Patrick Curran. Beset with surging debt and collapsing tourism revenues, the island nation has been assessed at growing risk of default by rating agencies. \nMexico\u2019s currency depreciation has helped put the country on course for its largest current account surplus in more than 30 years, Goldman Sachs estimates.\nDEEPER, PROLONGED\nRemittances are relatively stable compared with other financial flows. That includes foreign direct investment, which remittances overtook in 2019. Meanwhile portfolio flows, set to surge in the last quarter of 2020 two their highest since the first quarter of 2013, are prone to sharp reversals as they did during the taper tantrum.\nBut the outlook is uncertain.\nThe World Bank in October revised its 2020 estimated drop in flows to low- and middle-income countries to 7% from 19.7% previously, but predicted a further 7.5% dip next year. That is a deeper and longer downturn than during the global financial crisis, when flows shrank 4.9% in 2009, before rebounding 11.8% a year later.\nFor the first time in recent history, the stock of international migrants is expected to fall in 2020. Those remaining in host countries face an uncertain future.\nIn the United States, in a reversal of pre-pandemic trends, the unemployment rate for immigrants was now 2 percentage points higher than the rate for natives, according to the OECD.\n\u201cWe are expecting a strong recovery in global growth as vaccination is rolled out and we begin to see a normalization in economic activity. This should support global remittances,\u201d said Farouk Soussa, senior economist at Goldman Sachs.\n\u201cOn the other hand, we think there have been a number of one-off factors that have held up remittances this year, and these may not come into play next year.\u201d\nThe Gulf, accounting for around 40% of total outward remittances, may see a push to replace foreign workers with locals in 2021, Soussa said.\nThat is bad news for countries that rely on transfers from the Gulf, such as Bangladesh, Philippines, Egypt and Lebanon. Lebanon\u2019s financial crisis and dwindling economy mean remittances are seen rising to more than a third of GDP in 2020.\nOne hope is a recovery in exports and tourism, the other big money maker and hard currency source for emerging economies. Yet while the vaccine rollout should help, the outlook is uncertain. \u2014 Reuters", "date_published": "2020-12-23T00:31:19+08:00", "date_modified": "2020-12-23T00:31:19+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "remittance", "大象传媒" ], "summary": "LONDON \u2014 Larger-than-expected money transfers from migrants overseas have provided a tonic for several sickly economies during the coronavirus crisis, but the outlook for such flows remains fraught with uncertainty even as vaccines are rolled out." }, { "id": "/?p=335123", "url": "/the-nation/2020/12/18/335123/saudi-arabia-top-destination-for-ofws-intl-report/", "title": "Saudi Arabia top destination for OFWs \u2014 int\u2019l report", "content_html": "A country in the Middle East serves as the top destination for Filipino migrant workers, an international report revealed on Friday.
\nAccording to the Asia-Pacific Migration Report for 2020, there are at least 433, 600 overseas Filipino workers (OFWs) in Saudi Arabia, placing the country as the top destination for Filipinos seeking opportunities abroad.\u00a0
\nThe report placed the Philippines as among the 10 global remittance receivers, with a total remittance of $35 billion in 2019. India and China were the world\u2019s largest remittance recipients, receiving over $83 billion and $68 billion in 2019, respectively, the report noted.
\nThe report also noted that remittance flows to Asia and the Pacific rose from $183 billion in 2009 to $330 billion in 2019, which is slightly less than half the global total of $717 billion in 2019.\u00a0
\nMeanwhile, a resolution expressing full support for Filipino migrants all over the world and commending the efforts of the government to protect their rights and welfare has been filed in the House of Representatives.
\nThe resolution was filed in time for the commemoration of International Migrants Day on Dec. 18.\u00a0
\nThe resolution noted that there are currently around 10.5 million Filipinos living in over 150 countries and territories.
\n\u201cThe Philippines stands by its conviction to support, protect, and uphold the dignity of every Filipino worker abroad, and as President Rodrigo Duterte stated, \u2018never to be slaves\u201d but rather be respected and even recognized for their contribution to their host nations,\u201d the resolution said.
\nThe resolution said the country has shown its firm commitment to the protection of its migrants by being one of the 152 countries that adopted the United Nations Global Compact for Migration, an international framework that will manage migration and provide decent treatment for millions of migrants worldwide.
\nThe resolution also commended the signing of a memorandum of agreement between the Philippines and Kuwait on the employment of Household Service Workers, \u201cwhich ensured prompt and effective assistance to 250,000 Filipinos in Kuwait.\u201d
\nThe resolution also enumerated the actions congressmen had taken to benefit migrant workers, including the passage on third and final Reading of House Bill No. 5832 this year, creating the Department of Filipinos Overseas which will focus on the promotion of welfare of OFWs.
\nDeliberation on the Senate counterpart bill had been deferred to next year, but the President certified it as urgent in mid-December. \u2014 Kyle Aristophere T. Atienza
\n", "content_text": "House files resolution protecting OFW rights and welfare\nA country in the Middle East serves as the top destination for Filipino migrant workers, an international report revealed on Friday.\nAccording to the Asia-Pacific Migration Report for 2020, there are at least 433, 600 overseas Filipino workers (OFWs) in Saudi Arabia, placing the country as the top destination for Filipinos seeking opportunities abroad.\u00a0\nThe report placed the Philippines as among the 10 global remittance receivers, with a total remittance of $35 billion in 2019. India and China were the world\u2019s largest remittance recipients, receiving over $83 billion and $68 billion in 2019, respectively, the report noted.\nThe report also noted that remittance flows to Asia and the Pacific rose from $183 billion in 2009 to $330 billion in 2019, which is slightly less than half the global total of $717 billion in 2019.\u00a0\nMeanwhile, a resolution expressing full support for Filipino migrants all over the world and commending the efforts of the government to protect their rights and welfare has been filed in the House of Representatives.\nThe resolution was filed in time for the commemoration of International Migrants Day on Dec. 18.\u00a0\nThe resolution noted that there are currently around 10.5 million Filipinos living in over 150 countries and territories.\n\u201cThe Philippines stands by its conviction to support, protect, and uphold the dignity of every Filipino worker abroad, and as President Rodrigo Duterte stated, \u2018never to be slaves\u201d but rather be respected and even recognized for their contribution to their host nations,\u201d the resolution said.\nThe resolution said the country has shown its firm commitment to the protection of its migrants by being one of the 152 countries that adopted the United Nations Global Compact for Migration, an international framework that will manage migration and provide decent treatment for millions of migrants worldwide.\nThe resolution also commended the signing of a memorandum of agreement between the Philippines and Kuwait on the employment of Household Service Workers, \u201cwhich ensured prompt and effective assistance to 250,000 Filipinos in Kuwait.\u201d\nThe resolution also enumerated the actions congressmen had taken to benefit migrant workers, including the passage on third and final Reading of House Bill No. 5832 this year, creating the Department of Filipinos Overseas which will focus on the promotion of welfare of OFWs.\nDeliberation on the Senate counterpart bill had been deferred to next year, but the President certified it as urgent in mid-December. \u2014 Kyle Aristophere T. Atienza", "date_published": "2020-12-18T18:46:54+08:00", "date_modified": "2020-12-18T18:46:54+08:00", "authors": [ { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" }, "tags": [ "Kyle Aristophere T. Atienza", "OFWs", "remittance", "The Nation" ] }, { "id": "/?p=327364", "url": "/editors-picks/2020/11/09/327364/remittance-outlook-remains-bleak-amid-pandemic/", "title": "Remittance outlook remains bleak amid pandemic", "content_html": "REMITTANCE PLAYERS in the country remain pessimistic on the growth of transactions due to the continued impact of the coronavirus disease 2019 (COVID-19) on the incomes of overseas Filipino workers (OFWs), a study by the Bangko Sentral ng Pilipinas (BSP) showed.
\n\u201cThe industry\u2019s prospect for international remittance is largely not favorable, with 54% expecting a decline in both volume and value of transactions, while 43% of them are forecasting a decline of more than 20% percent,\u201d the BSP\u2019s Report on the Financial System for the First Semester 2020 said.
\nThe central bank conducted an impact survey in May with respondents from selected firms involved in the business, including remittance and transfer companies, banks, and electronic money issuers, among others.
\n\u201cPreliminary results showed that the COVID-19 pandemic has greatly affected the remittance channels, with approximately 75% of the respondents reporting decline in the volume and value of both international and domestic remittances based on their transactions for the month of April 2020,\u201d the BSP said.
\nMoney sent home by OFWs declined 2.6% year on year to $19.285 billion in the first eight months of the year. The BSP expects inflows to drop by 2% this year before bouncing back and growing by 4% next year.
\nMore than 237,000 OFWs have already been repatriated as of Nov. 3, latest data from the Department of Foreign Affairs showed.
\nFirms attributed the drop in remittances mainly to the pandemic, which took its toll on the incomes of overseas workers.
\n\u201cAs a net receiver of international remittances, the effects of the pandemic are seen as profound on the Philippine remittance market as the crisis affected the OFWs capacity to send remittances back home,\u201d the BSP said.
\nDuring the lockdown, 93% of remittance channels were able to continue their operations on the back of the authority provided by the government for remittance services to continue their services, business continuity plans deployed in line with BSP regulation, and relief measures from the side of the central bank.
\nMeanwhile, in terms of accessibility, pawnshops and money service providers had a wider reach as they made up 85% of the total physical remittance touch points as of June. On the other hand, big banks had a 15% share.
\n\u201cRemittance flows can take place through various channels. These include formal or regulated channels such as banks and money transfer operators or money service businesses, which include pawnshops with corollary remittance activity, and informal channels such as sending via bus/courier companies, friends or relatives,\u201d the BSP said.
\nAmong these modes of transfer, the BSP said pawnshops that also have remittance services and money service businesses remain as major access points for remittance transactions on the back of their wider reach across the Philippines.
\n\u201cAs of end-May 2020, there were 505 BSP-supervised financial institutions with a total of 45,182 remittance access points,\u201d the BSP said. \u2014 L.W.T. Noble
\n", "content_text": "REMITTANCE FIRMS expect inflows to remain slow as the coronavirus pandemic affects the incomes of Filipino workers abroad. \u2014 BW FILE PHOTO\nREMITTANCE PLAYERS in the country remain pessimistic on the growth of transactions due to the continued impact of the coronavirus disease 2019 (COVID-19) on the incomes of overseas Filipino workers (OFWs), a study by the Bangko Sentral ng Pilipinas (BSP) showed.\n\u201cThe industry\u2019s prospect for international remittance is largely not favorable, with 54% expecting a decline in both volume and value of transactions, while 43% of them are forecasting a decline of more than 20% percent,\u201d the BSP\u2019s Report on the Financial System for the First Semester 2020 said.\nThe central bank conducted an impact survey in May with respondents from selected firms involved in the business, including remittance and transfer companies, banks, and electronic money issuers, among others.\n\u201cPreliminary results showed that the COVID-19 pandemic has greatly affected the remittance channels, with approximately 75% of the respondents reporting decline in the volume and value of both international and domestic remittances based on their transactions for the month of April 2020,\u201d the BSP said.\nMoney sent home by OFWs declined 2.6% year on year to $19.285 billion in the first eight months of the year. The BSP expects inflows to drop by 2% this year before bouncing back and growing by 4% next year.\nMore than 237,000 OFWs have already been repatriated as of Nov. 3, latest data from the Department of Foreign Affairs showed.\nFirms attributed the drop in remittances mainly to the pandemic, which took its toll on the incomes of overseas workers.\n\u201cAs a net receiver of international remittances, the effects of the pandemic are seen as profound on the Philippine remittance market as the crisis affected the OFWs capacity to send remittances back home,\u201d the BSP said.\nDuring the lockdown, 93% of remittance channels were able to continue their operations on the back of the authority provided by the government for remittance services to continue their services, business continuity plans deployed in line with BSP regulation, and relief measures from the side of the central bank.\nMeanwhile, in terms of accessibility, pawnshops and money service providers had a wider reach as they made up 85% of the total physical remittance touch points as of June. On the other hand, big banks had a 15% share.\n\u201cRemittance flows can take place through various channels. These include formal or regulated channels such as banks and money transfer operators or money service businesses, which include pawnshops with corollary remittance activity, and informal channels such as sending via bus/courier companies, friends or relatives,\u201d the BSP said.\nAmong these modes of transfer, the BSP said pawnshops that also have remittance services and money service businesses remain as major access points for remittance transactions on the back of their wider reach across the Philippines.\n\u201cAs of end-May 2020, there were 505 BSP-supervised financial institutions with a total of 45,182 remittance access points,\u201d the BSP said. \u2014 L.W.T. Noble", "date_published": "2020-11-09T00:04:41+08:00", "date_modified": "2020-11-09T00:04:41+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Featured2", "Luz Wendy T. Noble", "remittance", "Banking & Finance", "Editors' Picks" ], "summary": "REMITTANCE PLAYERS in the country remain pessimistic on the growth of transactions due to the continued impact of the coronavirus disease 2019 (COVID-19) on the incomes of overseas Filipino workers (OFWs), a study by the Bangko Sentral ng Pilipinas (BSP) showed." }, { "id": "/?p=315809", "url": "/economy/2020/09/09/315809/phl-bangladesh-most-vulnerable-to-remittance-slump-fitch/", "title": "PHL, Bangladesh most vulnerable to remittance slump \u2014 Fitch", "content_html": "THE PHILIPPINES and Bangladesh are the most exposed to a decline in remittances during the pandemic, in terms of number of households dependent on the inflows, a dependency which has increased due to the weak labor market, according to Fitch Ratings.
\n\u201cThis shock is likely to strain the incomes of the already vulnerable households, reducing their ability to meet basic consumption needs,\u201d it said in a note.
\nFitch cited a study from the Asian Development Bank which found that 8% of households in the Philippines receive remittances.
\nIn June, cash remittances bound for the Philippines increased 7.7% year on year to $2.465 billion, rebounding from declines between March and May.
\nHowever, inflows were down 4.2% in the first half at $14.019 billion. The Bangko Sentral ng Pilipinas expects cash remittances to fall by 5% this year due to the worsening impact of the pandemic.
\nFitch said migrant workers that have been displaced due to the crisis will likely remit their full savings before returning to their home countries.
\n\u201cIn this case, the impact of the pandemic on remittances would not be immediate, but would filter through in the coming quarters as migrant workers return to their home countries,\u201d Fitch said.
\nMore than 164,000 overseas Filipino workers (OFWs) have been repatriated due to the crisis, according to the Department of Foreign Affairs.
\nThese OFWs have come home to a weak labor market with many jobless Filipinos competing for positions. The unemployment rate in July was 10%, much lower than the 17.7% in April but higher than the 5.4% from a year earlier, according to the Philippine Statistics Authority. The July rate represents 4.571 million jobless Filipinos.
\n\u201cLabor markets are also unlikely to be able to absorb a large influx of returning migrant workers, which will further dampen incomes and present possible social challenges,\u201d Fitch said. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE PHILIPPINES and Bangladesh are the most exposed to a decline in remittances during the pandemic, in terms of number of households dependent on the inflows, a dependency which has increased due to the weak labor market, according to Fitch Ratings.\n\u201cThis shock is likely to strain the incomes of the already vulnerable households, reducing their ability to meet basic consumption needs,\u201d it said in a note.\nFitch cited a study from the Asian Development Bank which found that 8% of households in the Philippines receive remittances.\nIn June, cash remittances bound for the Philippines increased 7.7% year on year to $2.465 billion, rebounding from declines between March and May.\nHowever, inflows were down 4.2% in the first half at $14.019 billion. The Bangko Sentral ng Pilipinas expects cash remittances to fall by 5% this year due to the worsening impact of the pandemic.\nFitch said migrant workers that have been displaced due to the crisis will likely remit their full savings before returning to their home countries.\n\u201cIn this case, the impact of the pandemic on remittances would not be immediate, but would filter through in the coming quarters as migrant workers return to their home countries,\u201d Fitch said.\nMore than 164,000 overseas Filipino workers (OFWs) have been repatriated due to the crisis, according to the Department of Foreign Affairs.\nThese OFWs have come home to a weak labor market with many jobless Filipinos competing for positions. The unemployment rate in July was 10%, much lower than the 17.7% in April but higher than the 5.4% from a year earlier, according to the Philippine Statistics Authority. The July rate represents 4.571 million jobless Filipinos.\n\u201cLabor markets are also unlikely to be able to absorb a large influx of returning migrant workers, which will further dampen incomes and present possible social challenges,\u201d Fitch said. \u2014 Luz Wendy T. Noble", "date_published": "2020-09-09T19:05:01+08:00", "date_modified": "2020-09-09T19:05:01+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Luz Wendy T. Noble", "remittance", "Economy", "One News" ], "summary": "THE PHILIPPINES and Bangladesh are the most exposed to a decline in remittances during the pandemic, in terms of number of households dependent on the inflows, a dependency which has increased due to the weak labor market, according to Fitch Ratings." }, { "id": "/?p=313963", "url": "/economy/2020/08/31/313963/remittance-decline-seen-weakening-consumer-spending-demand-diokno/", "title": "Remittance decline seen weakening consumer spending, demand \u2014 Diokno", "content_html": "THE DECLINE in cash remittances due to the coronavirus pandemic will translate to lower consumer spending as well as demand, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.
\n\u201cThe impact of lower overseas Filipino remittances on inflation is via lower consumer spending hence less aggregate demand,\u201d he said in a text message.
\nConsumption accounts for 70% of the economy, which posted a record 16.5% gross domestic product contraction in the second quarter.
\nMr. Diokno said\u00a0 the pandemic is \u201cunprecedented\u201d because remittances would increase in the past regardless of crisis. He described it as \u201cinvariant to world economic performance.\u201d
\nThe peso\u2019s strengthening past the P48 per dollar level is expected to encourage overseas workers to send money to take advantage of the favorable exchange rate.
\n\u201cThat said, the impact of peso appreciation on inflation is tilted on the downside,\u201d he said.
\nThe peso ended trading at P48.485 to the dollar on Friday, gaining P14.50 centavos. Its Friday close was also its strongest in more than three years.
\nInflation in July was 2.7%, against 2.5% June result and the 2.4% year-earlier level. It remained within the 2-4% target by the BSP.
\nA 大象传媒 poll of 16 economists yielded a median estimate of 2.8% for August inflation, which would be significantly higher than the year-earlier 1.7%. The official August data will be reported by the Philippine Statistics Authority on Sept. 4.
\nEconomists studying the link between remittances and inflation have concluded that overseas Filipio workers (OFWs) tend to send more to their relatives back home when prices are rising.
\n\u201cWe surmise that increases in inflation in remittance-recipient economies motivate migrant workers to send more remittances to their families, by virtue of altruism, to smooth their family\u2019s consumption, provide additional funds to maintain their consumption as well as their standard of living,\u201d John Paolo R. Rivera, an economist from the Asian Institute of Management and Tereso S. Tullao, Jr., an economist from the De La Salle University said in their paper, \u201cInvestigating the link between remittances and inflation: evidence from the Philippines.\u201d
\nThe authors said their research showed that remittances reacted \u201cinstantaneously but at a lethargic pace.\u201d They noted that the impact of rising inflation on remittances tapered off after six months.
\n\u201cAn increase in inflation\u2026 will immediately increase remittances, which we attribute to the altruistic motive of sending remittances so that recipient households can maintain their consumption levels despite the reduction in purchasing power due to inflation,\u201d they said.
\nThe authors argued against previous studies which showed remittances induced inflation in developing countries by fueling domestic consumption and creating short-run demand pressures.
\n\u201cWe did not find empirical evidence that remittances directly cause inflation in the Philippines. Results from the Philippine case present conclusions dissimilar from other economies,\u201d they said.
\nThe Philippines is the fourth largest recipient of cash remittances in 2019, behind only India, China, and Mexico, according to World Bank data.
\nMore than 153,000 OFWs have been repatriated as of Aug. 29 due to the crisis, the Department of Foreign Affairs said. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE DECLINE in cash remittances due to the coronavirus pandemic will translate to lower consumer spending as well as demand, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.\n\u201cThe impact of lower overseas Filipino remittances on inflation is via lower consumer spending hence less aggregate demand,\u201d he said in a text message.\nConsumption accounts for 70% of the economy, which posted a record 16.5% gross domestic product contraction in the second quarter.\nMr. Diokno said\u00a0 the pandemic is \u201cunprecedented\u201d because remittances would increase in the past regardless of crisis. He described it as \u201cinvariant to world economic performance.\u201d\nThe peso\u2019s strengthening past the P48 per dollar level is expected to encourage overseas workers to send money to take advantage of the favorable exchange rate.\n\u201cThat said, the impact of peso appreciation on inflation is tilted on the downside,\u201d he said.\nThe peso ended trading at P48.485 to the dollar on Friday, gaining P14.50 centavos. Its Friday close was also its strongest in more than three years.\nInflation in July was 2.7%, against 2.5% June result and the 2.4% year-earlier level. It remained within the 2-4% target by the BSP.\nA 大象传媒 poll of 16 economists yielded a median estimate of 2.8% for August inflation, which would be significantly higher than the year-earlier 1.7%. The official August data will be reported by the Philippine Statistics Authority on Sept. 4.\nEconomists studying the link between remittances and inflation have concluded that overseas Filipio workers (OFWs) tend to send more to their relatives back home when prices are rising.\n\u201cWe surmise that increases in inflation in remittance-recipient economies motivate migrant workers to send more remittances to their families, by virtue of altruism, to smooth their family\u2019s consumption, provide additional funds to maintain their consumption as well as their standard of living,\u201d John Paolo R. Rivera, an economist from the Asian Institute of Management and Tereso S. Tullao, Jr., an economist from the De La Salle University said in their paper, \u201cInvestigating the link between remittances and inflation: evidence from the Philippines.\u201d\nThe authors said their research showed that remittances reacted \u201cinstantaneously but at a lethargic pace.\u201d They noted that the impact of rising inflation on remittances tapered off after six months.\n\u201cAn increase in inflation\u2026 will immediately increase remittances, which we attribute to the altruistic motive of sending remittances so that recipient households can maintain their consumption levels despite the reduction in purchasing power due to inflation,\u201d they said.\nThe authors argued against previous studies which showed remittances induced inflation in developing countries by fueling domestic consumption and creating short-run demand pressures.\n\u201cWe did not find empirical evidence that remittances directly cause inflation in the Philippines. Results from the Philippine case present conclusions dissimilar from other economies,\u201d they said.\nThe Philippines is the fourth largest recipient of cash remittances in 2019, behind only India, China, and Mexico, according to World Bank data.\nMore than 153,000 OFWs have been repatriated as of Aug. 29 due to the crisis, the Department of Foreign Affairs said. \u2014 Luz Wendy T. Noble", "date_published": "2020-08-31T19:57:30+08:00", "date_modified": "2020-08-31T19:57:30+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Benjamin E. Diokno", "Luz Wendy T. Noble", "remittance", "Economy" ], "summary": "THE DECLINE in cash remittances due to the coronavirus pandemic will translate to lower consumer spending as well as demand, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno." }, { "id": "/?p=309294", "url": "/editors-picks/2020/08/04/309294/evidence-mounting-for-remittance-collapse-as-repatriations-top-100000/", "title": "Evidence mounting for remittance collapse as repatriations top 100,000", "content_html": "OVERSEAS-WORKER repatriations during the pandemic have hit 102,000 so far, with even more due to return after losing their jobs due to weak global economies or even falling ill from coronavirus, an economist said.
\nAteneo Center for Economic Research and Development (ACERD) Director Alvin P. Ang said in an Asian Development Bank (ADB) webinar Tuesday that around 300,000-400,000 OFWs could lose their jobs as a result of the pandemic, based on April estimates issued by ACERD.
\nThe government estimate for further repatriations is for about 100,000 more returning home.
\nHe said cash sent home by Filipino migrant workers is mostly used for food and other household needs, but a \u201csignificant portion\u201d also went to paying for education, debt and medical expenses.
\nThe ADB released a policy brief Monday estimating a worst-case remittance decline of 20.2%, equivalent to $5.789 billion in lost remittances, assuming that global economies normalize after about a year of pandemic containment efforts.
\nThe bank estimated that in event of the worst case, the impact will be felt by 8.4% of all households receiving remittances.
\nAccording to the Bangko Sentral ng Pilipinas, remittances totaled $28.9 billion in 2018 and $30.1 billion in 2019.
\nThe central bank announced that overseas Filipino worker (OFW) remittances dropped 19% year on year to $2.106 billion in May, the largest drop since a 33.5% fall in January 2001.
\nOFWs, according to Mr. Ang, are largely concentrated in the Middle East where 55% or around 1.262 million OFWs are based. The leading deployment destinations are Saudi Arabia, Qatar and United Arab Emirates.
\nIn Asia, where remittance inflows are expected to drop by about $31.356-$56.968 billion, ADB Economic Research and Regional Cooperation Department Senior Economist James P. Villafuerte said around 54% or $16.8 billion will come from the Middle East, while the US will account for some 30% or $8.8 billion.
\nThe impact varies among migrant workers, depending on the sector in which they are employed and the overall economic conditions of host countries, said Aiko Kikkawa Takenaka, an economist at the ADB, during the same webinar.
\nMs. Takenaka said workers employed in leisure and hospitality sectors will be the most affected, as well as those in retail, wholesale, manufacturing, accommodation and food services.
\n\u201cRecruited migrants are another hidden victim. The deployment of a new batch of workers is being suspended in many countries due to travel restrictions, although some countries such as the Philippines continue to allow out-migration under some conditions. Travel restrictions have serious consequences for migration,\u201d she added.
\nMr. Ang said the Philippines has been \u201cproactive\u201d in helping OFWs through repatriation flights and by providing some income support, but these are still not enough as the pandemic continues to escalate.
\n\u201cOur view is that the Philippine government cannot do it alone; they have to negotiate with the destination countries if there are still a lot of workers (in host countries), especially those that are recovering right now, if it\u2019s possible (to ask them) not to send back the workers yet,\u201d he said.
\nOFW skills can be \u201cretooled\u201d for other jobs to allow them to continue working in their host countries, he said.
\n\u201cThis is a huge bilateral initiative that has to be done by the Philippines with a lot of destination countries… Many things need to be done in an international coordinated manner in this because a lot of workers are going to be affected. If it is possible, a multilateral approach to this challenge must be initiated soon,\u201d he said. \u2014 Beatrice M. Laforga
\n", "content_text": "OVERSEAS-WORKER repatriations during the pandemic have hit 102,000 so far, with even more due to return after losing their jobs due to weak global economies or even falling ill from coronavirus, an economist said.\nAteneo Center for Economic Research and Development (ACERD) Director Alvin P. Ang said in an Asian Development Bank (ADB) webinar Tuesday that around 300,000-400,000 OFWs could lose their jobs as a result of the pandemic, based on April estimates issued by ACERD.\nThe government estimate for further repatriations is for about 100,000 more returning home.\nHe said cash sent home by Filipino migrant workers is mostly used for food and other household needs, but a \u201csignificant portion\u201d also went to paying for education, debt and medical expenses.\nThe ADB released a policy brief Monday estimating a worst-case remittance decline of 20.2%, equivalent to $5.789 billion in lost remittances, assuming that global economies normalize after about a year of pandemic containment efforts.\nThe bank estimated that in event of the worst case, the impact will be felt by 8.4% of all households receiving remittances.\nAccording to the Bangko Sentral ng Pilipinas, remittances totaled $28.9 billion in 2018 and $30.1 billion in 2019.\nThe central bank announced that overseas Filipino worker (OFW) remittances dropped 19% year on year to $2.106 billion in May, the largest drop since a 33.5% fall in January 2001.\nOFWs, according to Mr. Ang, are largely concentrated in the Middle East where 55% or around 1.262 million OFWs are based. The leading deployment destinations are Saudi Arabia, Qatar and United Arab Emirates.\nIn Asia, where remittance inflows are expected to drop by about $31.356-$56.968 billion, ADB Economic Research and Regional Cooperation Department Senior Economist James P. Villafuerte said around 54% or $16.8 billion will come from the Middle East, while the US will account for some 30% or $8.8 billion.\nThe impact varies among migrant workers, depending on the sector in which they are employed and the overall economic conditions of host countries, said Aiko Kikkawa Takenaka, an economist at the ADB, during the same webinar.\nMs. Takenaka said workers employed in leisure and hospitality sectors will be the most affected, as well as those in retail, wholesale, manufacturing, accommodation and food services.\n\u201cRecruited migrants are another hidden victim. The deployment of a new batch of workers is being suspended in many countries due to travel restrictions, although some countries such as the Philippines continue to allow out-migration under some conditions. Travel restrictions have serious consequences for migration,\u201d she added.\nMr. Ang said the Philippines has been \u201cproactive\u201d in helping OFWs through repatriation flights and by providing some income support, but these are still not enough as the pandemic continues to escalate.\n\u201cOur view is that the Philippine government cannot do it alone; they have to negotiate with the destination countries if there are still a lot of workers (in host countries), especially those that are recovering right now, if it\u2019s possible (to ask them) not to send back the workers yet,\u201d he said.\nOFW skills can be \u201cretooled\u201d for other jobs to allow them to continue working in their host countries, he said.\n\u201cThis is a huge bilateral initiative that has to be done by the Philippines with a lot of destination countries… Many things need to be done in an international coordinated manner in this because a lot of workers are going to be affected. If it is possible, a multilateral approach to this challenge must be initiated soon,\u201d he said. \u2014 Beatrice M. Laforga", "date_published": "2020-08-04T18:45:50+08:00", "date_modified": "2020-08-04T18:45:50+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Beatrice M. Laforga", "Featured2", "OFW", "remittance", "Economy", "Editors' Picks" ], "summary": "OVERSEAS-WORKER repatriations during the pandemic have hit 102,000 so far, with even more due to return after losing their jobs due to weak global economies or even falling ill from coronavirus, an economist said." }, { "id": "/?p=308586", "url": "/economy/2020/07/30/308586/phl-remittance-decline-forecast-revised-to-15-from-10-iif/", "title": "PHL remittance-decline forecast revised to 15% from 10% \u2014 IIF", "content_html": "THE forecast decline in 2020 Philippine remittances has been revised to 15% from 10% as overseas workers lose their jobs or see their wages reduced, the Institute of International Finance (IIF) said.
\nIn its latest Macro Notes edition issued Wednesday, the IIF said inflows have dropped significantly in remittance-dependent countries like the Philippines, Bangladesh, Sri Lanka and Vietnam, but detected traces of a \u201cmoderate pickup\u201d in May.
\n\u201cThe outlook for the full year remains bleak \u2014 in the Philippines, for example, a country with remittances reaching 10% of GDP, we project a 15% decline,\u201d it said in the report, which carries the title \u201cEM Asia: COVID-Induced External Adjustment.\u201d
\n\u201cAs a result of lower remittances inflows, domestic demand, and consequentially imports, will remain under significant pressure for the rest of the year,\u201d it added.
\nThe study \u201canalyzed the external adjustments in emerging markets\u201d in Asia given the impact of the coronavirus pandemic, noting that the slowing global economy has dampened exports with weak domestic demand expected to drag down imports.
\nMeanwhile, other sources of foreign exchange inflows \u201chave come under significant pressure as well\u201d in the first six months, including income from foreign tourism and remittances.
\nCash remittances dropped 16.2% from a year earlier in April to $2.046 billion, the sharpest decline since a 33.5% slump in January 2001.
\nThe World Bank expects global remittances to decline 20% this year, while Moody\u2019s Investors Service sees Philippine remittance inflows falling 5-10%.
\n\u201cThe economic disruption brought about by the pandemic is unprecedented in both its severity and scope, and we are observing a global synchronized recession amidst widespread government-imposed restrictions. In this context, it is not surprising that international trade \u2014 including in services has dropped sharply,\u201d the IIF said.
\nIt said the more stringent lockdowns in the Philippines and India caused exports to decline sharply, while the prolonged restrictive measures to curb the spread of the virus weakened domestic demand.
\nIt said these \u201cdramatic changes in international trade\u201d will result in \u201csignificant current account adjustments\u201d in the region.
\nThe Philippine current account deficit hit $464 million in 2019 or 0.1% of gross domestic product (GDP), narrower than the $8.773-billion gap seen in 2018.
\n\u201cThe dramatic shift in cross-border flows could accelerate structural changes in the region, such as the shifting and upgrading of industrial capacities and shortening of supply chains. Countries in EM Asia are also attempting to strengthen domestic tourism and reduce their overall dependence on external demand,\u201d it added.
\nThe Philippines projects a 2-3.4% GDP contraction this year. \u2014 Beatrice M. Laforga
\n", "content_text": "THE forecast decline in 2020 Philippine remittances has been revised to 15% from 10% as overseas workers lose their jobs or see their wages reduced, the Institute of International Finance (IIF) said.\nIn its latest Macro Notes edition issued Wednesday, the IIF said inflows have dropped significantly in remittance-dependent countries like the Philippines, Bangladesh, Sri Lanka and Vietnam, but detected traces of a \u201cmoderate pickup\u201d in May.\n\u201cThe outlook for the full year remains bleak \u2014 in the Philippines, for example, a country with remittances reaching 10% of GDP, we project a 15% decline,\u201d it said in the report, which carries the title \u201cEM Asia: COVID-Induced External Adjustment.\u201d\n\u201cAs a result of lower remittances inflows, domestic demand, and consequentially imports, will remain under significant pressure for the rest of the year,\u201d it added.\nThe study \u201canalyzed the external adjustments in emerging markets\u201d in Asia given the impact of the coronavirus pandemic, noting that the slowing global economy has dampened exports with weak domestic demand expected to drag down imports.\nMeanwhile, other sources of foreign exchange inflows \u201chave come under significant pressure as well\u201d in the first six months, including income from foreign tourism and remittances.\nCash remittances dropped 16.2% from a year earlier in April to $2.046 billion, the sharpest decline since a 33.5% slump in January 2001.\nThe World Bank expects global remittances to decline 20% this year, while Moody\u2019s Investors Service sees Philippine remittance inflows falling 5-10%.\n\u201cThe economic disruption brought about by the pandemic is unprecedented in both its severity and scope, and we are observing a global synchronized recession amidst widespread government-imposed restrictions. In this context, it is not surprising that international trade \u2014 including in services has dropped sharply,\u201d the IIF said.\nIt said the more stringent lockdowns in the Philippines and India caused exports to decline sharply, while the prolonged restrictive measures to curb the spread of the virus weakened domestic demand.\nIt said these \u201cdramatic changes in international trade\u201d will result in \u201csignificant current account adjustments\u201d in the region.\nThe Philippine current account deficit hit $464 million in 2019 or 0.1% of gross domestic product (GDP), narrower than the $8.773-billion gap seen in 2018.\n\u201cThe dramatic shift in cross-border flows could accelerate structural changes in the region, such as the shifting and upgrading of industrial capacities and shortening of supply chains. Countries in EM Asia are also attempting to strengthen domestic tourism and reduce their overall dependence on external demand,\u201d it added.\nThe Philippines projects a 2-3.4% GDP contraction this year. \u2014 Beatrice M. Laforga", "date_published": "2020-07-30T19:39:30+08:00", "date_modified": "2020-07-30T19:39:30+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Beatrice M. Laforga", "remittance", "Economy", "One News" ], "summary": "THE forecast decline in 2020 Philippine remittances has been revised to 15% from 10% as overseas workers lose their jobs or see their wages reduced, the Institute of International Finance (IIF) said." }, { "id": "/?p=305495", "url": "/editors-picks/2020/07/16/305495/april-remittance-contraction-hits-19-year-record/", "title": "April remittance contraction hits 19-year record", "content_html": "MONEY sent home by Filipinos overseas continued to dwindle for the second straight month in April \u2014 the biggest drop in almost two decades \u2014 as many of them lost their jobs amid a global coronavirus pandemic.
\nCash remittances from overseas Filipino workers (OFW) coursed through banks shrank by 16.2% from a year earlier to $2.046 billion, the Philippine central bank said in a statement on Wednesday. This is the widest drop since the 33.5% contraction in January 2001.
\nRemittances fell by 3% to $9.448 billion in the four months through April, Bangko Sentral ng Pilipinas (BSP) data showed.
\nThe central bank traced the slump to the repatriation of Filipino workers from countries heavily affected by the pandemic, and the closure or limited operating hours of some banks here and overseas during the lockdown.
\nMore than 82,000 Filipino workers from about 60 countries and 132 cruise ships displaced by the coronavirus pandemic have been repatriated, according to the Foreign Affairs department.
\nRemittances from land-based OFWs dropped by 3.5% to $7.335\u00a0 billion, while inflows from sea-based workers fell by 1.3% to $2.114 billion.
\nCash remittances could have dropped further in May, when quarantine measures were the strictest, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said in an e-mail.
\nA potential contraction in remittance inflows could further pull economic growth by 0.4% this year, central bank Governor Benjamin E. Diokno said last month.
\nRemittance inflows might recover next year, depending on how fast host countries can bounce back from the global health crisis, he said.
\nThe BSP expects remittance inflows to drop by 5% this year after projecting 2% growth in May.
\nThe US was the top remittance source in the first four months, accounting for 29.6% of the inflows, followed by Singapore, Saudi Arabia, Japan, United Arab Emirates, United Kingdom, Canada, Qatar, Hong Kong and Korea. Cash remittances from these countries made up 79.1% of the total.
\nCash remittances fell by 4.7% to $2.397 billion in March as the coronavirus pandemic took its toll on host countries and global oil prices plunged.
\nThis was the first contraction since the 2.9% fall in June last year, and the highest decline since the 9.8% contraction posted in March 2018.
\nIn 2019, cash remittance inflows rose by 4.1% to a record $30.13 billion despite global uncertainties and the decline in money sent home from the Middle East.
\nPersonal remittances, which include inflows in kind, plunged by 16.1% to $2.276 billion, also the widest contraction since the 33.5% drop in January 2001. It dropped by 2.9% to $10.494 billion in the four months through April.
\nGlobal remittances are expected to fall by 20% this year due to the economic crisis induced by the COVID-19 pandemic and shutdown, according to the World Bank.
\nThe projected decline, which would be the sharpest in history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country, it said in an April report.
\nRemittances to low and middle-income countries were projected to fall by 19.7% to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.
\nRemittance flows to the East Asia and Pacific region, which includes the Philippines, were expected to fall by 13% this year from $147 billion in 2019.
\nMr. Asuncion said remittances could still bounce back \u201cas overseas workers who have retained their jobs respond to seasonal needs back home, including school enrollment and during the holidays.\u201d
\nThe remittance drop would hit households that use the money for basic needs especially during the pandemic, John Paolo R. Rivera, an economist at the Asian Institute of Management, said in an e-mail.
\n\u201cThey might have to rely on social amelioration and other government subsidies to finance their consumption until their income source is restored,\u201d he added. \u2014 Luz Wendy T. Noble
\n", "content_text": "MONEY sent home by Filipinos overseas continued to dwindle for the second straight month in April \u2014 the biggest drop in almost two decades \u2014 as many of them lost their jobs amid a global coronavirus pandemic.\nCash remittances from overseas Filipino workers (OFW) coursed through banks shrank by 16.2% from a year earlier to $2.046 billion, the Philippine central bank said in a statement on Wednesday. This is the widest drop since the 33.5% contraction in January 2001.\nRemittances fell by 3% to $9.448 billion in the four months through April, Bangko Sentral ng Pilipinas (BSP) data showed.\nThe central bank traced the slump to the repatriation of Filipino workers from countries heavily affected by the pandemic, and the closure or limited operating hours of some banks here and overseas during the lockdown.\nMore than 82,000 Filipino workers from about 60 countries and 132 cruise ships displaced by the coronavirus pandemic have been repatriated, according to the Foreign Affairs department.\nRemittances from land-based OFWs dropped by 3.5% to $7.335\u00a0 billion, while inflows from sea-based workers fell by 1.3% to $2.114 billion.\nCash remittances could have dropped further in May, when quarantine measures were the strictest, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said in an e-mail.\nA potential contraction in remittance inflows could further pull economic growth by 0.4% this year, central bank Governor Benjamin E. Diokno said last month.\nRemittance inflows might recover next year, depending on how fast host countries can bounce back from the global health crisis, he said.\nThe BSP expects remittance inflows to drop by 5% this year after projecting 2% growth in May.\nThe US was the top remittance source in the first four months, accounting for 29.6% of the inflows, followed by Singapore, Saudi Arabia, Japan, United Arab Emirates, United Kingdom, Canada, Qatar, Hong Kong and Korea. Cash remittances from these countries made up 79.1% of the total.\nCash remittances fell by 4.7% to $2.397 billion in March as the coronavirus pandemic took its toll on host countries and global oil prices plunged.\nThis was the first contraction since the 2.9% fall in June last year, and the highest decline since the 9.8% contraction posted in March 2018.\nIn 2019, cash remittance inflows rose by 4.1% to a record $30.13 billion despite global uncertainties and the decline in money sent home from the Middle East.\nPersonal remittances, which include inflows in kind, plunged by 16.1% to $2.276 billion, also the widest contraction since the 33.5% drop in January 2001. It dropped by 2.9% to $10.494 billion in the four months through April.\nGlobal remittances are expected to fall by 20% this year due to the economic crisis induced by the COVID-19 pandemic and shutdown, according to the World Bank.\nThe projected decline, which would be the sharpest in history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country, it said in an April report.\nRemittances to low and middle-income countries were projected to fall by 19.7% to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.\nRemittance flows to the East Asia and Pacific region, which includes the Philippines, were expected to fall by 13% this year from $147 billion in 2019.\nMr. Asuncion said remittances could still bounce back \u201cas overseas workers who have retained their jobs respond to seasonal needs back home, including school enrollment and during the holidays.\u201d\nThe remittance drop would hit households that use the money for basic needs especially during the pandemic, John Paolo R. Rivera, an economist at the Asian Institute of Management, said in an e-mail.\n\u201cThey might have to rely on social amelioration and other government subsidies to finance their consumption until their income source is restored,\u201d he added. \u2014 Luz Wendy T. Noble", "date_published": "2020-07-16T00:33:20+08:00", "date_modified": "2020-07-16T00:33:20+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Featured2", "Luz Wendy T. Noble", "remittance", "Editors' Picks", "One News", "大象传媒" ], "summary": "Money sent home by Filipinos overseas continued to dwindle for the second straight month in April \u2014 the biggest drop in almost two decades \u2014 as many of them lost their jobs amid a global coronavirus pandemic." }, { "id": "/?p=298133", "url": "/economy/2020/06/04/298133/remittance-decline-due-to-covid-19-seen-much-worse-than-in-2007-09-financial-crisis/", "title": "Remittance decline due to COVID-19 seen much worse than in 2007-09 financial crisis", "content_html": "THE decline in remittances to developing countries will be much worse than the 5% drop recorded in the wake of the 2007-2009 global financial crisis, the Institute of International Finance (IIF) said.
\nIn its Macro Notes report issued Wednesday, IIF, a trade group representing financial institutions, said remittances could drop by 20-30% this year due to the economic shocks caused by the coronavirus disease 2019 (COVID-19) pandemic.
\nIIF, based in Washington, DC, said the current crisis is affecting more countries than in 2007-2009.
\n“During the global financial crisis (GFC), remittances fell by about 5%. As the COVID-19 recession affects even more countries simultaneously, especially host countries in the EM (emerging markets) universe, a drop of 20-30% seems possible,” IFF said Wednesday.
\nThe IIF said pressure on remittances “will be particularly challenging for countries with high external funding pressure where remittances help reduce otherwise large current account deficits, including most of Central America, Caribbean nations, as well the Philippines and Egypt.”
\nIt said remittances are usually countercyclical but many institutions are projecting a sharp decline in 2020 due to the economic shock from the pandemic.
\n“Remittances depend on migration, host- and home-country growth, exchange rate fluctuations, and the ability to transfer money across borders,” it said.
\nIn host countries, lockdowns and business closures have “disproportionately” affected sectors where migrants are usually employed including services jobs in food and hospitality, retail and wholesale, tourism and transportation.
\nIt said many migrants also work in sectors that were allowed to operate during the lockdown but were highly exposed to coronavirus such as in agriculture, food processing and health care.
\n“Furthermore, migrants’ ability to shift across sectors or gain access to government support is likely curtailed. Finally, while electronic cross-border flows can continue unabated (during) COVID-19 lockdowns, carrying cash is still the preferred method of remittance transfers in many cases,” it said.
\nAccording to IIF’s data, the US, the European Union and Gulf countries are some of “economies that account for the bulk of global remittances flows, (which) are among the most exposed to the COVID-19 and oil price shocks.”
\nIt said these economies are among the important sources of remittances for home countries in Africa and Asia.
\n“Among key recipient countries, important emerging markets such as India, China, Mexico, the Philippines, Egypt, and Nigeria account for close to 40% of all remittances in dollar terms,” it said.
\nThe Bangko Sentral ng Pilipinas in April projected that cash remittances from overseas Filipino workers (OFWs) could decline by 0.2-0.8 percentage points this year, after the original projection of 2% growth outlook issued earlier that month.
\nThe labor department reported that over 300,000 OFWs have been displaced by the pandemic, with tens of thousands returning to the Philippines. Over 200,000, mostly in the US and Europe, have chosen not to return. \u2014 Beatrice M. Laforga
\n", "content_text": "THE decline in remittances to developing countries will be much worse than the 5% drop recorded in the wake of the 2007-2009 global financial crisis, the Institute of International Finance (IIF) said.\nIn its Macro Notes report issued Wednesday, IIF, a trade group representing financial institutions, said remittances could drop by 20-30% this year due to the economic shocks caused by the coronavirus disease 2019 (COVID-19) pandemic.\nIIF, based in Washington, DC, said the current crisis is affecting more countries than in 2007-2009.\n“During the global financial crisis (GFC), remittances fell by about 5%. As the COVID-19 recession affects even more countries simultaneously, especially host countries in the EM (emerging markets) universe, a drop of 20-30% seems possible,” IFF said Wednesday.\nThe IIF said pressure on remittances “will be particularly challenging for countries with high external funding pressure where remittances help reduce otherwise large current account deficits, including most of Central America, Caribbean nations, as well the Philippines and Egypt.”\nIt said remittances are usually countercyclical but many institutions are projecting a sharp decline in 2020 due to the economic shock from the pandemic.\n“Remittances depend on migration, host- and home-country growth, exchange rate fluctuations, and the ability to transfer money across borders,” it said.\nIn host countries, lockdowns and business closures have “disproportionately” affected sectors where migrants are usually employed including services jobs in food and hospitality, retail and wholesale, tourism and transportation.\nIt said many migrants also work in sectors that were allowed to operate during the lockdown but were highly exposed to coronavirus such as in agriculture, food processing and health care.\n“Furthermore, migrants’ ability to shift across sectors or gain access to government support is likely curtailed. Finally, while electronic cross-border flows can continue unabated (during) COVID-19 lockdowns, carrying cash is still the preferred method of remittance transfers in many cases,” it said.\nAccording to IIF’s data, the US, the European Union and Gulf countries are some of “economies that account for the bulk of global remittances flows, (which) are among the most exposed to the COVID-19 and oil price shocks.”\nIt said these economies are among the important sources of remittances for home countries in Africa and Asia.\n“Among key recipient countries, important emerging markets such as India, China, Mexico, the Philippines, Egypt, and Nigeria account for close to 40% of all remittances in dollar terms,” it said.\nThe Bangko Sentral ng Pilipinas in April projected that cash remittances from overseas Filipino workers (OFWs) could decline by 0.2-0.8 percentage points this year, after the original projection of 2% growth outlook issued earlier that month.\nThe labor department reported that over 300,000 OFWs have been displaced by the pandemic, with tens of thousands returning to the Philippines. Over 200,000, mostly in the US and Europe, have chosen not to return. \u2014 Beatrice M. Laforga", "date_published": "2020-06-04T20:04:59+08:00", "date_modified": "2020-06-04T20:04:59+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Beatrice M. Laforga", "remittance", "Economy" ], "summary": "THE decline in remittances to developing countries will be much worse than the 5% drop recorded in the wake of the 2007-2009 global financial crisis, the Institute of International Finance (IIF) said." }, { "id": "/?p=294664", "url": "/editors-picks/2020/05/15/294664/remittance-growth-slows-in-february-2/", "title": "Remittance growth slows in February", "content_html": "By Luz Wendy T. Noble, Reporter
\nMONEY sent home by overseas Filipino workers saw slower growth in February, as the coronavirus outbreak began to spread around the world.
\nData from the central bank showed cash remittances of overseas Filipinos coursed through banks stood at to $2.358 billion in February, up 2.5% from the $2.301 billion seen a year ago. However, the annual growth rate seen in February is much slower than the 6.6% year-on-year expansion seen in January.
\nInflows also fell 10.95% from the $2.648 billion recorded in January.
\nThe February cash remittances were the lowest since the $2.372 billion logged in November 2019.
\nCash remittances in the first two months of 2020 rose by 4.6% to $5.006 billion from the $4.784 billion recorded from January to February last year.
\nBangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the remittance growth target has been cut to an average of 2% for this year.
\n“The BSP staff projects that the OFW remittances would shrink by 0.2 to 0.8% from the original three percent growth forecast, hence the revised forecast is a range of 2.2 to 2.8% or a midpoint of 2.5%,” Mr. Diokno said in a Viber message to reporters on Friday. “To be on the conservative side, BSP adopted an amended forecast of two percent, which is less than 2.5%.”
\nMeanwhile, personal remittances totalled $2.623 billion, up by 2.6% year-on-year from the $2.557 billion logged in February 2019.
\nHowever, personal remittances fell by 10.9% from the January level, and was slower compared to the 7.3% year-on-year pace in the previous month.
\nThe United States was the biggest source of remittance in February, accounting for 39% of the total. This was followed by Singapore, Japan, Saudi Arabia, United Kingdom, United Arab Emirates, Qatar, Canada, Hong Kong, and Korea. These countries are the source of 79.4% of total cash remittances, the BSP said.
\nThe central bank said personal remittances from land-based OFWs with contracts of more than a year jumped 3.5% to $2 billion from the $1.9 billion logged a year ago. Meanwhile, personal remittances from sea-based workers and land-based workers with work contracts of less than one year declined by 0.9% to $560 million from the $570 million traced a year ago.
\nFor the January to February period, personal remittances grew by five percent to $5.566 billion from the $5.302 billion seen in the comparable year ago period.
\nBIGGER COVID IMPACT LOOMS
\nThe slowing pace of remittance growth already reflects the impact of COVID-19 pandemic in some countries with many OFWs, according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.
“There was already some slowdown in tourism- and travel-related industries worldwide in February amid travel advisories as lockdowns in China started after the Lunar New Year Holidays in the latter part of January,” he said in an e-mail.
\nMr. Ricafort said remittance flows in March and in April may see much slower growth or even a contraction as more countries implemented lockdown measures that have affected many industries that employ OFWs.
\nIn the first two months of the year, cash remittances from China totalled $4.518 million, which is just about 0.09% of the cumulative $5.006 billion logged during the period, according to Security Bank Corp. Chief Economist Robert Dan J. Roces.
\nMeanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said that COVID-related restrictions as of February were only imposed in countries that form a small part of the total OFW remittances.
\n“The expected decline may be felt when the full impact of COVID-19 health restrictions are factored in with much of the host countries of OFWs,” Mr. Asuncion said.
\nWorld Bank has projected remittance flows to fall by 13% in lower and middle-income countries as migrant workers face layoffs and lower wages amid the pandemic and the looming global recession.
\nBSP’s Mr. Diokno has said that around 20,000 to 30,000 OFWs have already been repatriated in the midst of the current situation.
\n“Remittances have proven resilient in past downturns. Yet while we all hope for a positive growth, remittances this time may contract year-on-year as the hospitality and cruise ship components being the hardest hit might pull down remittance levels,” Security Bank’s Mr. Roces said.
\nAmong the hardest hit economies is the United States, the top remittance source of the Philippines. As of Thursday, COVID-19 cases in the US reached over 1.42 million, nearly a third of over 4.45 million cases around the world.
\n“Note that [many] Filipinos in the US are either doctors, nurses and are in other healthcare-related jobs. There are also Filipino teachers that may not be necessarily affected by any work stoppages for some other job types,” Mr. Asuncion said.
\nAmid tighter finances, RCBC’s Mr. Ricafort believes that some OFWs may continue to send money back home in the spirit of altruism.
\n“Some OFWs may still send money to the Philippines by tapping their savings for the meantime to tide them over during the lockdowns until the re-start of the economies in various host countries,” Mr. Ricafort said.
\nA drop in remittance will be significant as it boosts consumption, which accounts for about 70% of the country’s economy.
\n", "content_text": "By Luz Wendy T. Noble, Reporter\nMONEY sent home by overseas Filipino workers saw slower growth in February, as the coronavirus outbreak began to spread around the world.\nData from the central bank showed cash remittances of overseas Filipinos coursed through banks stood at to $2.358 billion in February, up 2.5% from the $2.301 billion seen a year ago. However, the annual growth rate seen in February is much slower than the 6.6% year-on-year expansion seen in January.\nInflows also fell 10.95% from the $2.648 billion recorded in January.\nThe February cash remittances were the lowest since the $2.372 billion logged in November 2019.\nCash remittances in the first two months of 2020 rose by 4.6% to $5.006 billion from the $4.784 billion recorded from January to February last year.\nBangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the remittance growth target has been cut to an average of 2% for this year.\n“The BSP staff projects that the OFW remittances would shrink by 0.2 to 0.8% from the original three percent growth forecast, hence the revised forecast is a range of 2.2 to 2.8% or a midpoint of 2.5%,” Mr. Diokno said in a Viber message to reporters on Friday. “To be on the conservative side, BSP adopted an amended forecast of two percent, which is less than 2.5%.”\nMeanwhile, personal remittances totalled $2.623 billion, up by 2.6% year-on-year from the $2.557 billion logged in February 2019.\nHowever, personal remittances fell by 10.9% from the January level, and was slower compared to the 7.3% year-on-year pace in the previous month.\nThe United States was the biggest source of remittance in February, accounting for 39% of the total. This was followed by Singapore, Japan, Saudi Arabia, United Kingdom, United Arab Emirates, Qatar, Canada, Hong Kong, and Korea. These countries are the source of 79.4% of total cash remittances, the BSP said.\nThe central bank said personal remittances from land-based OFWs with contracts of more than a year jumped 3.5% to $2 billion from the $1.9 billion logged a year ago. Meanwhile, personal remittances from sea-based workers and land-based workers with work contracts of less than one year declined by 0.9% to $560 million from the $570 million traced a year ago.\nFor the January to February period, personal remittances grew by five percent to $5.566 billion from the $5.302 billion seen in the comparable year ago period.\nBIGGER COVID IMPACT LOOMS\nThe slowing pace of remittance growth already reflects the impact of COVID-19 pandemic in some countries with many OFWs, according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.\n“There was already some slowdown in tourism- and travel-related industries worldwide in February amid travel advisories as lockdowns in China started after the Lunar New Year Holidays in the latter part of January,” he said in an e-mail.\nMr. Ricafort said remittance flows in March and in April may see much slower growth or even a contraction as more countries implemented lockdown measures that have affected many industries that employ OFWs.\nIn the first two months of the year, cash remittances from China totalled $4.518 million, which is just about 0.09% of the cumulative $5.006 billion logged during the period, according to Security Bank Corp. Chief Economist Robert Dan J. Roces.\nMeanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said that COVID-related restrictions as of February were only imposed in countries that form a small part of the total OFW remittances.\n“The expected decline may be felt when the full impact of COVID-19 health restrictions are factored in with much of the host countries of OFWs,” Mr. Asuncion said.\nWorld Bank has projected remittance flows to fall by 13% in lower and middle-income countries as migrant workers face layoffs and lower wages amid the pandemic and the looming global recession.\nBSP’s Mr. Diokno has said that around 20,000 to 30,000 OFWs have already been repatriated in the midst of the current situation.\n“Remittances have proven resilient in past downturns. Yet while we all hope for a positive growth, remittances this time may contract year-on-year as the hospitality and cruise ship components being the hardest hit might pull down remittance levels,” Security Bank’s Mr. Roces said.\nAmong the hardest hit economies is the United States, the top remittance source of the Philippines. As of Thursday, COVID-19 cases in the US reached over 1.42 million, nearly a third of over 4.45 million cases around the world.\n“Note that [many] Filipinos in the US are either doctors, nurses and are in other healthcare-related jobs. There are also Filipino teachers that may not be necessarily affected by any work stoppages for some other job types,” Mr. Asuncion said.\nAmid tighter finances, RCBC’s Mr. Ricafort believes that some OFWs may continue to send money back home in the spirit of altruism.\n“Some OFWs may still send money to the Philippines by tapping their savings for the meantime to tide them over during the lockdowns until the re-start of the economies in various host countries,” Mr. Ricafort said.\nA drop in remittance will be significant as it boosts consumption, which accounts for about 70% of the country’s economy.", "date_published": "2020-05-15T21:03:59+08:00", "date_modified": "2020-05-15T21:03:59+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Luz Wendy T. Noble", "remittance", "Editors' Picks", "大象传媒" ], "summary": "MONEY sent home by overseas Filipino workers saw slower growth in February, as the coronavirus outbreak began to spread around the world." }, { "id": "/?p=290976", "url": "/editors-picks/2020/04/23/290976/ofws-in-essential-jobs-seen-mitigating-remittance-drop/", "title": "OFWs in essential jobs seen mitigating remittance drop", "content_html": "THE government\u2019s estimate of the decline in remittances from overseas workers is 2-3%, far more optimistic than the World Bank\u2019s own view of a 13% average drop in funds sent home to low and middle income countries (LMICs) in East Asia and the Pacific.
\nCiting Bangko Sentral ng Pilipinas (BSP) estimates, Finance Undersecretary and Chief Economist Gil S. Betran told 大象传媒 that OFWs remittances could contract by 2-3% this year.
\n\u201cBSP has an estimate \u2014 2 to 3% decline. The reason is that most of OFWs are in socially necessary industries including health and education,\u201d Mr. Beltran said in a mobile phone message Thursday.
\n\u201cThe forecast is negative 2 to negative 3% year-on-year, lower contraction than World Bank forecast for global remittances,\u201d he said.
\nCash remittances to the Philippines were at a record $30.133 billion in 2019, up 4.1%. As recently as early April, the BSP projected OFW remittances to grow by 3% this year.
\nNicholas Antonio T. Mapa, senior economist at ING Bank Philippines, expects OFW remittances to post a year-on-year contraction of 2.5% in 2020 as Filipinos working abroad \u201cmay not have enough income\u201d to send cash to their families here with lockdowns imposed in several countries, forcing businesses to suspend operations.
\n\u201cRemittances from abroad will likely experience a 2.5% contraction due to COVID-19 which could affect both growth prospects and the external position of the Philippines. Impaired remittance flows in 2020 forced us to drop our growth estimates while we believe that peso will come under pressure once remittance support fades when lockdown measures are relaxed,\u201d Mr. Mapa said in a note Thursday.
\nHe projects the Philippine economy to contract by 2.2% this year in the worst-case scenario following the expected decline in remittance flows, which support domestic consumption, and the Luzon-wide lockdown which was extended until April 30.
\nIn a report, \u201cCOVID-19 Crisis Through a Migration Lens,\u201d the World Bank projected remittances to LMICs worldwide to decline 19.7% to $445 billion this year. The lost remittances could spell \u201closs of a crucial financing lifeline for many vulnerable households.\u201d
\nGrowth is expected to bounce back to 5.6% to $470 billion next year.
\nFor LMICs in the East Asia and Pacific, including the Philippines, the World Bank projects remittance flows to drop 13% to $128 billion this year before bouncing back in 2021, growing 7.5% to $138 billion.
\n\u201cThis is not so much due to a decline in the stock of international migrants, but largely due to a fall in wages and the employment of migrant workers in host nations due to COVID-19,\u201d the World Bank said.
\nThe bank said if the country of origin is in crisis, migrants tend to increase the money they send back home; if the host country is in crisis, remittances can decline.
\nIt said lockdowns and travel bans have a direct effect on employment and wages of foreign workers due to business closures and disrupted travel.
\n\u201cThe outlook for remittances for 2020 remains as uncertain as the impact of COVID-19 on global growth and may depend to a large extent on the measures taken to restrain the spread of the disease. In the past, remittances have been countercyclical during times of disaster in the recipient economy. This time, however, the pandemic has affected all countries, and the economic fallout is likely to vary due to country-specific characteristics,\u201d it said. \u2014 Beatrice M. Laforga
\n", "content_text": "THE government\u2019s estimate of the decline in remittances from overseas workers is 2-3%, far more optimistic than the World Bank\u2019s own view of a 13% average drop in funds sent home to low and middle income countries (LMICs) in East Asia and the Pacific.\nCiting Bangko Sentral ng Pilipinas (BSP) estimates, Finance Undersecretary and Chief Economist Gil S. Betran told 大象传媒 that OFWs remittances could contract by 2-3% this year.\n\u201cBSP has an estimate \u2014 2 to 3% decline. The reason is that most of OFWs are in socially necessary industries including health and education,\u201d Mr. Beltran said in a mobile phone message Thursday.\n\u201cThe forecast is negative 2 to negative 3% year-on-year, lower contraction than World Bank forecast for global remittances,\u201d he said.\nCash remittances to the Philippines were at a record $30.133 billion in 2019, up 4.1%. As recently as early April, the BSP projected OFW remittances to grow by 3% this year.\nNicholas Antonio T. Mapa, senior economist at ING Bank Philippines, expects OFW remittances to post a year-on-year contraction of 2.5% in 2020 as Filipinos working abroad \u201cmay not have enough income\u201d to send cash to their families here with lockdowns imposed in several countries, forcing businesses to suspend operations.\n\u201cRemittances from abroad will likely experience a 2.5% contraction due to COVID-19 which could affect both growth prospects and the external position of the Philippines. Impaired remittance flows in 2020 forced us to drop our growth estimates while we believe that peso will come under pressure once remittance support fades when lockdown measures are relaxed,\u201d Mr. Mapa said in a note Thursday.\nHe projects the Philippine economy to contract by 2.2% this year in the worst-case scenario following the expected decline in remittance flows, which support domestic consumption, and the Luzon-wide lockdown which was extended until April 30.\nIn a report, \u201cCOVID-19 Crisis Through a Migration Lens,\u201d the World Bank projected remittances to LMICs worldwide to decline 19.7% to $445 billion this year. The lost remittances could spell \u201closs of a crucial financing lifeline for many vulnerable households.\u201d\nGrowth is expected to bounce back to 5.6% to $470 billion next year.\nFor LMICs in the East Asia and Pacific, including the Philippines, the World Bank projects remittance flows to drop 13% to $128 billion this year before bouncing back in 2021, growing 7.5% to $138 billion.\n\u201cThis is not so much due to a decline in the stock of international migrants, but largely due to a fall in wages and the employment of migrant workers in host nations due to COVID-19,\u201d the World Bank said.\nThe bank said if the country of origin is in crisis, migrants tend to increase the money they send back home; if the host country is in crisis, remittances can decline.\nIt said lockdowns and travel bans have a direct effect on employment and wages of foreign workers due to business closures and disrupted travel.\n\u201cThe outlook for remittances for 2020 remains as uncertain as the impact of COVID-19 on global growth and may depend to a large extent on the measures taken to restrain the spread of the disease. In the past, remittances have been countercyclical during times of disaster in the recipient economy. This time, however, the pandemic has affected all countries, and the economic fallout is likely to vary due to country-specific characteristics,\u201d it said. \u2014 Beatrice M. Laforga", "date_published": "2020-04-23T20:16:06+08:00", "date_modified": "2020-04-23T20:16:06+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Beatrice M. Laforga", "Featured2", "OFWs", "remittance", "Economy", "Editors' Picks", "One News" ], "summary": "THE government’s estimate of the decline in remittances from overseas workers is 2-3%, far more optimistic than the World Bank’s own view of a 13% average drop in funds sent home to low and middle income countries (LMICs) in East Asia and the Pacific." }, { "id": "/?p=289536", "url": "/editors-picks/2020/04/16/289536/remittance-growth-seen-slowing-as-virus-spreads/", "title": "Remittance growth seen slowing as virus spreads", "content_html": "CASH REMITTANCES from overseas Filipino workers (OFWs) could drop by as much as $6 billion in 2020 as up to 400,000 Filipinos could lose their jobs amid a global recession due to the coronavirus disease 2019 (COVID-19), according to a paper published by the Ateneo de Manila University Department of Economics and Ateneo Center for Economic Research and Development (ACERD).
\nAuthored by ACERD Director Alvin P. Ang and Institute for Migration and Development Issues Executive Director Jeremaiah M. Opiniano, the paper said a drop in remittances will also take a toll on consumption, which could drop 20 to 40%.
\n\u201cCash remittances will visibly decline \u2014 from $30 billion in 2019 to about $24 to 27 billion this year (that being the steepest year-on-year decline of remittances in Philippine migration history),\u201d the report said.
\nThe projection is based on a worst-case scenario where 20% of all OFWs are affected by the pandemic.
\n\u201cThat is roughly 10 to 20% or $3 to $6 billion less, year on year. This is assuming that significant parts of the global economy continue to be in some sort of a lockdown,\u201d it said.
\nMoreover, the paper said 300,000 to 400,000 OFWs may be hit by layoffs, pay cuts and even repatriation.
\nIn 2019, cash remittances grew 4.1% to hit a record $30.133 billion. January remittances also climbed 6.6% to $2.648 billion.
\nThe central bank already downgraded its remittance growth forecast to 2% this year from 3% as it priced in the impact of the virus on the global economy.
\nCash remittances fuel household consumption that makes up 70% of the country\u2019s gross domestic product.
\nAccording to the Ateneo paper, a more severe impact on remittances is seen amid falling oil prices.
\n\u201cIn the current scenario, all of the oil producers in the Middle East are at risk with falling oil prices. Note that nearly half of our OFWs are based there,\u201d the authors said.
\n\u201cIf the trend of falling prices continues, the Middle East might be forced to stop oil production and possibly lay off many workers including Filipinos,\u201d they added.
\nThis is compared to the impact of the global financial crisis which was less grim than expected as OFWs remained in their countries of employment and adjusted, which included deskilling.
\nThe authors also said the drop in remittances will likely cause a 20-40% drop in consumption.
\nMeanwhile, ANZ Research sees cash remittances contracting this year.
\nIn a report on Wednesday, ANZ Research Chief Economist Sanjay Mathur said those working in the services sectors have been particularly affected by the pandemic.
\n\u201cOf particular note is that the retail services sector, where close to one-fifth of all OFWs are deployed, has been closed down in several economies,\u201d Mr. Mathur said.
\nThe likely increase in unemployment rates in several economies could also impede hiring of new OFWs as well as wage growth, he said.
\n\u201cAs an example, our house view is that the US unemployment rate could rise to just under 20% in Q2 2020,\u201d he said. The US accounted for more than a third or 37.6% of total remittance inflows to the Philippines in 2019.
\nMr. Mathur also flagged the risk of a drop in remittances if the peso weakens.
\n\u201cIn general, a depreciation of the peso vis-\u00e0-vis the remittance currency augments purchasing power in the short term. This is particularly in the case of lower income groups whose spending is concentrated in domestically produced goods.\u201d
\nMr. Mathur said they expect slower remittances to hit basic spending for Filipinos, including food, education, medicare, as well as home and auto purchases. \u2014 Luz Wendy T. Noble
\n", "content_text": "CASH REMITTANCES from overseas Filipino workers (OFWs) could drop by as much as $6 billion in 2020 as up to 400,000 Filipinos could lose their jobs amid a global recession due to the coronavirus disease 2019 (COVID-19), according to a paper published by the Ateneo de Manila University Department of Economics and Ateneo Center for Economic Research and Development (ACERD).\nAuthored by ACERD Director Alvin P. Ang and Institute for Migration and Development Issues Executive Director Jeremaiah M. Opiniano, the paper said a drop in remittances will also take a toll on consumption, which could drop 20 to 40%.\n\u201cCash remittances will visibly decline \u2014 from $30 billion in 2019 to about $24 to 27 billion this year (that being the steepest year-on-year decline of remittances in Philippine migration history),\u201d the report said.\nThe projection is based on a worst-case scenario where 20% of all OFWs are affected by the pandemic.\n\u201cThat is roughly 10 to 20% or $3 to $6 billion less, year on year. This is assuming that significant parts of the global economy continue to be in some sort of a lockdown,\u201d it said.\nMoreover, the paper said 300,000 to 400,000 OFWs may be hit by layoffs, pay cuts and even repatriation.\nIn 2019, cash remittances grew 4.1% to hit a record $30.133 billion. January remittances also climbed 6.6% to $2.648 billion.\nThe central bank already downgraded its remittance growth forecast to 2% this year from 3% as it priced in the impact of the virus on the global economy.\nCash remittances fuel household consumption that makes up 70% of the country\u2019s gross domestic product.\nAccording to the Ateneo paper, a more severe impact on remittances is seen amid falling oil prices.\n\u201cIn the current scenario, all of the oil producers in the Middle East are at risk with falling oil prices. Note that nearly half of our OFWs are based there,\u201d the authors said.\n\u201cIf the trend of falling prices continues, the Middle East might be forced to stop oil production and possibly lay off many workers including Filipinos,\u201d they added.\nThis is compared to the impact of the global financial crisis which was less grim than expected as OFWs remained in their countries of employment and adjusted, which included deskilling.\nThe authors also said the drop in remittances will likely cause a 20-40% drop in consumption.\nMeanwhile, ANZ Research sees cash remittances contracting this year.\nIn a report on Wednesday, ANZ Research Chief Economist Sanjay Mathur said those working in the services sectors have been particularly affected by the pandemic.\n\u201cOf particular note is that the retail services sector, where close to one-fifth of all OFWs are deployed, has been closed down in several economies,\u201d Mr. Mathur said.\nThe likely increase in unemployment rates in several economies could also impede hiring of new OFWs as well as wage growth, he said.\n\u201cAs an example, our house view is that the US unemployment rate could rise to just under 20% in Q2 2020,\u201d he said. The US accounted for more than a third or 37.6% of total remittance inflows to the Philippines in 2019.\nMr. Mathur also flagged the risk of a drop in remittances if the peso weakens.\n\u201cIn general, a depreciation of the peso vis-\u00e0-vis the remittance currency augments purchasing power in the short term. This is particularly in the case of lower income groups whose spending is concentrated in domestically produced goods.\u201d\nMr. Mathur said they expect slower remittances to hit basic spending for Filipinos, including food, education, medicare, as well as home and auto purchases. \u2014 Luz Wendy T. Noble", "date_published": "2020-04-16T00:01:00+08:00", "date_modified": "2020-04-16T00:01:00+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Featured2", "Luz Wendy T. Noble", "remittance", "Banking & Finance", "Editors' Picks", "One News" ], "summary": "CASH REMITTANCES from overseas Filipino workers (OFWs) could drop by as much as $6 billion in 2020 as up to 400,000 Filipinos could lose their jobs amid a global recession due to the coronavirus disease 2019 (COVID-19), according to a paper published by the Ateneo de Manila University Department of Economics and Ateneo Center for Economic Research and Development (ACERD)." }, { "id": "/?p=288199", "url": "/economy/2020/04/06/288199/bsp-cuts-outlook-for-remittance-growth-to-2/", "title": "BSP cuts outlook for remittance growth to 2%", "content_html": "GROWTH in cash remittances from Overseas Filipino Workers (OFWs) is likely to slow to 2% in 2020 as the coronavirus disease 2019 (COVID-19) outbreak affects countries where OFWs are deployed, though remittances have tended to remain relatively steady even in past crises, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.
\n\u201cOur forecast before this crisis is that OFW remittances will increase by 3% (in 2020). Now that has been downgraded to 2%,\u201d Mr. Diokno said on ABS-CBN News Channel Sunday.
\nIn 2019, cash remittances rose 4.1% to a record $30.133 billion after coming in at $28.943 billion in 2018, according to the central bank data. This growth rate exceeded the 3% projection set by the BSP.
\nMr. Diokno said based on behavior observed in previous global crises, workers will continue to send money home, and speculated that they might be tapping their overseas savings.
\n\u201cOf course this crisis is like no other crisis in the past but if you go by our experience, crisis or no crisis, overseas Filipino remittances has been steady,\u201d Mr. Diokno said.
\n\u201cI think Overseas Filipino Workers (OFWs) recognize the needs of their families here, (and) continue to send remittances. Maybe they have extra savings abroad,\u201d he added.
\nMoney sent home by OFWs drives the consumer economy by boosting household spending, which accounts for about 70% of gross domestic product (GDP).
\nThe reduced outlook for cash remittance growth will have a major impact on economic growth, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.
\n\u201cEvery 1 percentage point decline in OFW remittances growth is equivalent to about $300 million or roughly about 0.1% of GDP, which could be (a substantial hit to) economic growth,\u201d he said in an e-mail.
\nThe National Economic and Development Authority (NEDA) has said economic growth could come in between -0.6% and 4.3% this year under a range of scenarios after the 5.9% gain seen in 2019. NEDA\u2019s estimate is a major downgrade from the 6.5% to 7.5% target set by the government when the outbreak was still not factored in.
\nCiting data from McKinsey and Co., Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said that the impact on remittance inflows of COVID-19 could be \u201cbigger than what is expected by the BSP.\u201d
\nThe McKinsey analysis, which includes data from the BSP and the World Health Organization, indicates that cash remittances from the most-affected economies during the SARS (Severe Acute Respiratory Syndrome) outbreak, including Hong Kong, Singapore, Taiwan, and Canada, saw a combined 18% drop between 2002 and 2003.
\n\u201cFor COVID-19, aside from Taiwan and Canada, additional countries such as the US and Italy may have decreased inflows,\u201d Mr. Asuncion said in an e-mail.
\nThe major decline in oil prices could also affect cash remittances, he said.
\n\u201cAside from COVID-19 with much fluidity and uncertainties, the collapse of global oil prices may also negatively impact remittance inflows particularly in Middle East countries, where a lot of Filipino foreign workers are deployed,\u201d he said.
\nMr. Asuncion sees OFW remittance growth titled more to the downside this year, with a recovery in the near term to depend on developments in containing the pandemic.
\nThe biggest remittance source in 2019 was the US, which accounted for 37.6% of total inflows. Inflows from the US, Saudi Arabia, Singapore, Japan, United Arab Emirates, the United Kingdom, Canada, Hong Kong, Germany, and Kuwait accounted for 78.4% of cash remittances for the year, according to the BSP.
\nGlobally, COVID-19 cases topped 1.2 million as of Monday, with the US accounting for more than 330,000 cases.
\nMr. Ricafort said that OFWs working for certain sectors will likely be more affected by the impact of the epidemic and the lockdowns it has caused in many economies.
\n\u201cOFWs employed in tourism, travel, hotel/accommodation, leisure, restaurants, retail, and other related industries that were hardly hit by lockdown and even COVID-19 infections such as those in the cruise ship industries could experience some decline in remittances in the coming months, until lockdowns are lifted and COVID-19 cases are better contained and controlled,\u201d Mr. Ricafort said.
\nOne possible upside in remittance growth is the deployment of more OFWs working in essential sectors like health care, he said.
\n\u201cSome OFWs worldwide are also part of essential services (last-to-go), such as health care/medical professionals and support staff,\u201d Mr. Ricafort said. \u2014 Luz Wendy T. Noble
\n", "content_text": "GROWTH in cash remittances from Overseas Filipino Workers (OFWs) is likely to slow to 2% in 2020 as the coronavirus disease 2019 (COVID-19) outbreak affects countries where OFWs are deployed, though remittances have tended to remain relatively steady even in past crises, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.\n\u201cOur forecast before this crisis is that OFW remittances will increase by 3% (in 2020). Now that has been downgraded to 2%,\u201d Mr. Diokno said on ABS-CBN News Channel Sunday.\nIn 2019, cash remittances rose 4.1% to a record $30.133 billion after coming in at $28.943 billion in 2018, according to the central bank data. This growth rate exceeded the 3% projection set by the BSP.\nMr. Diokno said based on behavior observed in previous global crises, workers will continue to send money home, and speculated that they might be tapping their overseas savings.\n\u201cOf course this crisis is like no other crisis in the past but if you go by our experience, crisis or no crisis, overseas Filipino remittances has been steady,\u201d Mr. Diokno said.\n\u201cI think Overseas Filipino Workers (OFWs) recognize the needs of their families here, (and) continue to send remittances. Maybe they have extra savings abroad,\u201d he added.\nMoney sent home by OFWs drives the consumer economy by boosting household spending, which accounts for about 70% of gross domestic product (GDP).\nThe reduced outlook for cash remittance growth will have a major impact on economic growth, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.\n\u201cEvery 1 percentage point decline in OFW remittances growth is equivalent to about $300 million or roughly about 0.1% of GDP, which could be (a substantial hit to) economic growth,\u201d he said in an e-mail.\nThe National Economic and Development Authority (NEDA) has said economic growth could come in between -0.6% and 4.3% this year under a range of scenarios after the 5.9% gain seen in 2019. NEDA\u2019s estimate is a major downgrade from the 6.5% to 7.5% target set by the government when the outbreak was still not factored in.\nCiting data from McKinsey and Co., Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said that the impact on remittance inflows of COVID-19 could be \u201cbigger than what is expected by the BSP.\u201d\nThe McKinsey analysis, which includes data from the BSP and the World Health Organization, indicates that cash remittances from the most-affected economies during the SARS (Severe Acute Respiratory Syndrome) outbreak, including Hong Kong, Singapore, Taiwan, and Canada, saw a combined 18% drop between 2002 and 2003.\n\u201cFor COVID-19, aside from Taiwan and Canada, additional countries such as the US and Italy may have decreased inflows,\u201d Mr. Asuncion said in an e-mail.\nThe major decline in oil prices could also affect cash remittances, he said.\n\u201cAside from COVID-19 with much fluidity and uncertainties, the collapse of global oil prices may also negatively impact remittance inflows particularly in Middle East countries, where a lot of Filipino foreign workers are deployed,\u201d he said.\nMr. Asuncion sees OFW remittance growth titled more to the downside this year, with a recovery in the near term to depend on developments in containing the pandemic.\nThe biggest remittance source in 2019 was the US, which accounted for 37.6% of total inflows. Inflows from the US, Saudi Arabia, Singapore, Japan, United Arab Emirates, the United Kingdom, Canada, Hong Kong, Germany, and Kuwait accounted for 78.4% of cash remittances for the year, according to the BSP.\nGlobally, COVID-19 cases topped 1.2 million as of Monday, with the US accounting for more than 330,000 cases.\nMr. Ricafort said that OFWs working for certain sectors will likely be more affected by the impact of the epidemic and the lockdowns it has caused in many economies.\n\u201cOFWs employed in tourism, travel, hotel/accommodation, leisure, restaurants, retail, and other related industries that were hardly hit by lockdown and even COVID-19 infections such as those in the cruise ship industries could experience some decline in remittances in the coming months, until lockdowns are lifted and COVID-19 cases are better contained and controlled,\u201d Mr. Ricafort said.\nOne possible upside in remittance growth is the deployment of more OFWs working in essential sectors like health care, he said.\n\u201cSome OFWs worldwide are also part of essential services (last-to-go), such as health care/medical professionals and support staff,\u201d Mr. Ricafort said. \u2014 Luz Wendy T. Noble", "date_published": "2020-04-06T19:33:50+08:00", "date_modified": "2020-04-06T19:33:50+08:00", "authors": [ { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/9965230d2fd009579b4e8df9a934f6d1021b1ee67e60bcb4cad3b7249a2900ce?s=512&d=mm&r=g" }, "tags": [ "BSP", "Luz Wendy T. Noble", "remittance", "Economy", "One News" ] }, { "id": "/?p=271037", "url": "/editors-picks/2019/12/27/271037/utility-payments-remittance-transactions-still-done-manually-despite-digital-platforms/", "title": "Utility payments, remittance transactions still done manually despite digital platforms", "content_html": "![\"\"](\"/wp-content/uploads/2017/05/Dollar-currency-Philstar.jpg\")
UTILITY PAYMENTS and remittance transactions are still done manually by majority of Filipinos, according to a study by Better Than Cash Alliance which recommended an interoperable platform to streamline these inflows.
\nAn estimate of only 4% of transactions are digital from the 120-130 million in remittances sent monthly from overseas or elsewhere domestically, according to the study entitled \u201cThe State of Digital Payments in the Philippines\u201d published earlier this year. Four out of five remittance transactions are still made over-the-counter (OTC), according to the study.
\n\u201cAs a result, Filipinos continue to bear the high cost and the administrative burden of sending remittances through brick-and-mortar branches,\u201d it said.
\nFor utility payments, less than 5% of the estimated 65-75 million utility payment transactions monthly are done digitally.
\nPayers opt to do OTC transactions for bills payment as well, the study said.
\n\u201cIn fact, it is reported that the average utility bill payment ($10-$30) is so small that the cost of conveyance is often higher than the bill amount. The opportunity cost of transacting in cash combined with the regularity of utility payments builds a compelling case for prioritizing this use-case,\u201d the report noted.
\nTo address some pain points in remittance and utility payments, the study recommended that the country invest in platforms aside from automated clearing houses InstaPay and PESONet launched under the National Retail Payments System of the Bangko Sentral ng Pilipinas (BSP).
\nPESONet is an electronic fund transfer service that compiles all interbank fund transfer instructions, goes for a batch process, and credits the amount to the receiver by the end of the banking day.
\nMeanwhile, the InstaPay allows real time transfers worth P50,000 or less with different banks or service providers involved in a matter of seconds or minutes
\n\u201cOne solution is a common P2P (person to person) payment interface that is mobile-first and allows transfer of money from any account to any account,\u201d the study said.
\nThe report also cited a Software Development Kit that could be open source for any payment provider that wishes to utilize the white label interface within their own mobile ecosystem or app.
\nAnother recommendation from the study is an interoperable platform which could link banks and quasi-banks when it comes to bill aggregation that could be conceptualized over the PESONet.
\n\u201cSuch platforms could potentially enable all actors…to offer and push for digital payment options in their businesses,\u201d the study said.
\nThe BSP wants 20% of all transactions to be done digitally by next year. It also eyes to make 30% of the transaction value coursed through e-payment facilities.
\nThe report found that the volume of digital payment usage went up to comprise 10% of total transactions in 2018 from only making up 1% in 2013. Meanwhile, value of e-payment transactions also increased to comprise 20% of transactions last year from 8% in 2013. \u2014 L.W.T. Noble
\n", "content_text": "A TELLER counts US dollars inside a money exchanger in Manila. \u2014 PHILIPPINE STAR/EDD GUMBAN\nUTILITY PAYMENTS and remittance transactions are still done manually by majority of Filipinos, according to a study by Better Than Cash Alliance which recommended an interoperable platform to streamline these inflows.\nAn estimate of only 4% of transactions are digital from the 120-130 million in remittances sent monthly from overseas or elsewhere domestically, according to the study entitled \u201cThe State of Digital Payments in the Philippines\u201d published earlier this year. Four out of five remittance transactions are still made over-the-counter (OTC), according to the study.\n\u201cAs a result, Filipinos continue to bear the high cost and the administrative burden of sending remittances through brick-and-mortar branches,\u201d it said.\nFor utility payments, less than 5% of the estimated 65-75 million utility payment transactions monthly are done digitally.\nPayers opt to do OTC transactions for bills payment as well, the study said.\n\u201cIn fact, it is reported that the average utility bill payment ($10-$30) is so small that the cost of conveyance is often higher than the bill amount. The opportunity cost of transacting in cash combined with the regularity of utility payments builds a compelling case for prioritizing this use-case,\u201d the report noted.\nTo address some pain points in remittance and utility payments, the study recommended that the country invest in platforms aside from automated clearing houses InstaPay and PESONet launched under the National Retail Payments System of the Bangko Sentral ng Pilipinas (BSP).\nPESONet is an electronic fund transfer service that compiles all interbank fund transfer instructions, goes for a batch process, and credits the amount to the receiver by the end of the banking day.\nMeanwhile, the InstaPay allows real time transfers worth P50,000 or less with different banks or service providers involved in a matter of seconds or minutes\n\u201cOne solution is a common P2P (person to person) payment interface that is mobile-first and allows transfer of money from any account to any account,\u201d the study said.\nThe report also cited a Software Development Kit that could be open source for any payment provider that wishes to utilize the white label interface within their own mobile ecosystem or app.\nAnother recommendation from the study is an interoperable platform which could link banks and quasi-banks when it comes to bill aggregation that could be conceptualized over the PESONet.\n\u201cSuch platforms could potentially enable all actors…to offer and push for digital payment options in their businesses,\u201d the study said.\nThe BSP wants 20% of all transactions to be done digitally by next year. It also eyes to make 30% of the transaction value coursed through e-payment facilities.\nThe report found that the volume of digital payment usage went up to comprise 10% of total transactions in 2018 from only making up 1% in 2013. Meanwhile, value of e-payment transactions also increased to comprise 20% of transactions last year from 8% in 2013. \u2014 L.W.T. Noble", "date_published": "2019-12-27T00:03:11+08:00", "date_modified": "2019-12-27T00:03:11+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "digital", "Featured2", "remittance", "Banking & Finance", "Editors' Picks" ], "summary": "UTILITY PAYMENTS and remittance transactions are still done manually by majority of Filipinos, according to a study by Better Than Cash Alliance which recommended an interoperable platform to streamline these inflows." }, { "id": "/?p=269569", "url": "/editors-picks/2019/12/17/269569/reliance-on-ofw-remittances-grows/", "title": "Reliance on OFW remittances grows", "content_html": "![\"\"](\"/wp-content/uploads/2017/05/Peso-currency.jpg\")
LOW-INCOME Filipino migrants send remittances that are more than twice the monthly household income their families earn at home, a study found, causing their beneficiaries to have a tendency to \u201cover-depend\u201d on them.
\nThe study also found that one in five recipients struggle with running out of money until the next remittance is sent to them as they budget cash sent by family members working abroad mostly to daily needs and to pay for loans and bills.
\nUS-headquartered Uniteller Philippines launched the first part of a study that delved into remittance markets in Asia entitled \u201cBoth Sides of the Coin: The Receiver\u2019s Story\u201d on Monday which found that the average value of remittance transactions sent by low-income overseas Filipino workers averaged $343. Meanwhile, the average monthly household income of the families they left at home was at $196.
\nThis compares to the average value of remittances in other similar markets such as India, Indonesia and Vietnam at $498.
\nAmong Asian markets, receivers of remittances in the Philippines and Indonesia allotted the most (25%) for day-to-day family needs, compared to Vietnam (24%) India (18%). The study also found that a quarter of what low-income Filipino recipient families receive from remittances allocate the money for bill and loan payments.
\nFilipino respondents of the survey also said they allotted monthly for education (13%) medical needs (11%), as well as non-essential luxury items (7%).
\nRecipients of remittances from Filipino migrant workers allocated 13% of what they receive for savings.
\n\u201cRemittances are playing a more important role in the livelihoods of low-income families and communities. As the reliance on remittances grows, a key challenge is ensuring this income translates to building sustainable wealth,\u201d UniTeller CEO Alberto Guerra said in a statement on Monday.
\nBut despite receiving money that is more than twice what their household earns locally, 19% of respondents from the Philippines said they still run out of money before they get their next monthly remittance from their family members abroad.
\n\u201cIn the Philippines, 72% say that they will contact the sender when short of money, with over half (53%) saying they will ultimately have to forgo day-to-day needs if they exhaust their remittance funds,\u201d the report noted.
\nAdditionally, 41% of Filipino respondents said they experienced emotional stress due to expectations of receiving resistance. Meanwhile, more than half (54%) of them said receiving remittances has had an impact with their relationship to the sender.
\n\u201cMaybe it\u2019s a regular [monthly] thing but in the end, it\u2019s not assured right? Something [may happen] to the sender side or to the receiver side. Remember we have a lot of vacations, some calamities,\u201d UniTeller Philippine Country President Noel Cristal told reporters during the study\u2019s media briefing held in Taguig on Monday.
\nThe survey is a product of 1,911 interviews in Indonesia, India, Vietnam and the Philippines with remittance recipients belonging to low-income households. Among the interviewees, 606 were from the Philippines.
\nData from the Philippine Statistics Authority show that about 2.3 million overseas Filipino workers in 2018. This has placed the country as the fourth- largest remittance recipient with $34 billion received in 2018, according to World Bank data, only lagging behind India ($79 billion), China ($67 billion), and Mexico ($36 billion).
\nLatest data from the Bangko Sentral ng Pilipinas showed cash remittances grew 8% to $2.671 billion in October from $2.474 billion a year ago. \u2014 L.W.T. Noble
\n", "content_text": "A STUDY shows families of migrant workers are becoming more reliant on their remittances. \u2014 BW FILE PHOTO\nLOW-INCOME Filipino migrants send remittances that are more than twice the monthly household income their families earn at home, a study found, causing their beneficiaries to have a tendency to \u201cover-depend\u201d on them.\nThe study also found that one in five recipients struggle with running out of money until the next remittance is sent to them as they budget cash sent by family members working abroad mostly to daily needs and to pay for loans and bills.\nUS-headquartered Uniteller Philippines launched the first part of a study that delved into remittance markets in Asia entitled \u201cBoth Sides of the Coin: The Receiver\u2019s Story\u201d on Monday which found that the average value of remittance transactions sent by low-income overseas Filipino workers averaged $343. Meanwhile, the average monthly household income of the families they left at home was at $196.\nThis compares to the average value of remittances in other similar markets such as India, Indonesia and Vietnam at $498.\nAmong Asian markets, receivers of remittances in the Philippines and Indonesia allotted the most (25%) for day-to-day family needs, compared to Vietnam (24%) India (18%). The study also found that a quarter of what low-income Filipino recipient families receive from remittances allocate the money for bill and loan payments.\nFilipino respondents of the survey also said they allotted monthly for education (13%) medical needs (11%), as well as non-essential luxury items (7%).\nRecipients of remittances from Filipino migrant workers allocated 13% of what they receive for savings.\n\u201cRemittances are playing a more important role in the livelihoods of low-income families and communities. As the reliance on remittances grows, a key challenge is ensuring this income translates to building sustainable wealth,\u201d UniTeller CEO Alberto Guerra said in a statement on Monday.\nBut despite receiving money that is more than twice what their household earns locally, 19% of respondents from the Philippines said they still run out of money before they get their next monthly remittance from their family members abroad.\n\u201cIn the Philippines, 72% say that they will contact the sender when short of money, with over half (53%) saying they will ultimately have to forgo day-to-day needs if they exhaust their remittance funds,\u201d the report noted.\nAdditionally, 41% of Filipino respondents said they experienced emotional stress due to expectations of receiving resistance. Meanwhile, more than half (54%) of them said receiving remittances has had an impact with their relationship to the sender.\n\u201cMaybe it\u2019s a regular [monthly] thing but in the end, it\u2019s not assured right? Something [may happen] to the sender side or to the receiver side. Remember we have a lot of vacations, some calamities,\u201d UniTeller Philippine Country President Noel Cristal told reporters during the study\u2019s media briefing held in Taguig on Monday.\nThe survey is a product of 1,911 interviews in Indonesia, India, Vietnam and the Philippines with remittance recipients belonging to low-income households. Among the interviewees, 606 were from the Philippines.\nData from the Philippine Statistics Authority show that about 2.3 million overseas Filipino workers in 2018. This has placed the country as the fourth- largest remittance recipient with $34 billion received in 2018, according to World Bank data, only lagging behind India ($79 billion), China ($67 billion), and Mexico ($36 billion).\nLatest data from the Bangko Sentral ng Pilipinas showed cash remittances grew 8% to $2.671 billion in October from $2.474 billion a year ago. \u2014 L.W.T. Noble", "date_published": "2019-12-17T00:04:07+08:00", "date_modified": "2019-12-17T00:04:07+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "Featured2", "Luz Wendy T. Noble", "remittance", "Banking & Finance", "Editors' Picks" ], "summary": "LOW-INCOME Filipino migrants send remittances that are more than twice the monthly household income their families earn at home, a study found, causing their beneficiaries to have a tendency to “over-depend” on them." }, { "id": "/?p=238466", "url": "/banking-finance/2019/06/26/238466/phl-urged-to-use-fintech-to-lower-remittance-costs/", "title": "PHL urged to use fintech to lower remittance costs", "content_html": "THE PHILIPPINES must take steps to make remittances more efficient, even as financial technology has improved in the country, money transfer solutions company Ripple said.
\n\u201cIt is not advanced. It doesn\u2019t take advantage of the technologies,\u201d Eric van Miltenburg, Senior Vice-President of Global Operations at Ripple, said in a phone interview.
\nMr. Miltenburg noted the slow transfer time of remittances from one country to the Philippines and the costs related to these transactions.
\n\u201cIt\u2019s taking several days, the costs are significant,\u201d Mr. Miltenburg said, noting that remittances in the country would cost around 7% of every $200 sent. \u201cThat system is very broken. Leverage your technology and provide alternative technology, banks and non-banks.\u201d
\nHe however noted that the country is capable of making such improvements given the increasing number of financial institutions offering technology services for remittances, citing Cebuana Lhuillier as one of its partners here in the country.
\nHe added that Ripple is also working with a local bank, but stopped short of disclosing details.
\n\u201cWe\u2019re seeing a significant demand in ASEAN and the Philippines… Over time, we will see more,\u201d he said.
\nMr. Miltenburg said he appreciates the Bangko Sentral ng Pilipinas (BSP) for its \u201dprogressive thinking\u201d on fintech and hopes to engage more with regulators both in the Philippines and in different parts of the globe.
\nHe noted that it is important that the government understands the importance of financial technology, especially as remittances provide a boost to household consumption, which is around 10% of the country\u2019s gross domestic product (GDP).
\n\u201cIt is not the technology that is the challenge but how we use it. The Philippines is one of the countries where the regulators are fast-forward. We\u2019re optimistic,\u201d Mr. Miltenburg said, noting that financial technology in the country \u201cis in the process of being upgraded.\u201d
\n\u201cThe pace of growth in the Philippines will continue… We will double the size of our office and that\u2019s reflective of the demand and activity in the region,\u201d he said.
\nCRYPTOCURRENCY
\nMeanwhile, Mr. Miltenburg said there is a need to use blockchain technology, specially cryptocurrencies, to facilitate faster remittances between countries.
Currently, Ripple uses XRP, a type of cryptocurrency which the company claims to be cost-efficient for cross-border transactions.
\nAsked if the use of cryptocurrencies would not put overseas Filipino workers and their remittance recipients at risk of losing the money due to volatility, Mr. Miltenburg said there will be minimal risk since it only takes seconds to complete the transaction.
\n\u201cVolatility exists across all the coins. The volatility is relatively modest. XRP to peso, the amount of exposure is seconds, very minimal. Much more volatility in PHP to USD in three days than XRP,\u201d Mr. Miltenburg said.
\n\u201cWe\u2019re quite bullish on how cryptocurrency can play a great role here,\u201d he said. \u2014 Reicelene Joy N. Ignacio
\n", "content_text": "THE PHILIPPINES must take steps to make remittances more efficient, even as financial technology has improved in the country, money transfer solutions company Ripple said.\n\u201cIt is not advanced. It doesn\u2019t take advantage of the technologies,\u201d Eric van Miltenburg, Senior Vice-President of Global Operations at Ripple, said in a phone interview.\nMr. Miltenburg noted the slow transfer time of remittances from one country to the Philippines and the costs related to these transactions.\n\u201cIt\u2019s taking several days, the costs are significant,\u201d Mr. Miltenburg said, noting that remittances in the country would cost around 7% of every $200 sent. \u201cThat system is very broken. Leverage your technology and provide alternative technology, banks and non-banks.\u201d\nHe however noted that the country is capable of making such improvements given the increasing number of financial institutions offering technology services for remittances, citing Cebuana Lhuillier as one of its partners here in the country.\nHe added that Ripple is also working with a local bank, but stopped short of disclosing details.\n\u201cWe\u2019re seeing a significant demand in ASEAN and the Philippines… Over time, we will see more,\u201d he said.\nMr. Miltenburg said he appreciates the Bangko Sentral ng Pilipinas (BSP) for its \u201dprogressive thinking\u201d on fintech and hopes to engage more with regulators both in the Philippines and in different parts of the globe.\nHe noted that it is important that the government understands the importance of financial technology, especially as remittances provide a boost to household consumption, which is around 10% of the country\u2019s gross domestic product (GDP).\n\u201cIt is not the technology that is the challenge but how we use it. The Philippines is one of the countries where the regulators are fast-forward. We\u2019re optimistic,\u201d Mr. Miltenburg said, noting that financial technology in the country \u201cis in the process of being upgraded.\u201d\n\u201cThe pace of growth in the Philippines will continue… We will double the size of our office and that\u2019s reflective of the demand and activity in the region,\u201d he said.\nCRYPTOCURRENCY\nMeanwhile, Mr. Miltenburg said there is a need to use blockchain technology, specially cryptocurrencies, to facilitate faster remittances between countries.\nCurrently, Ripple uses XRP, a type of cryptocurrency which the company claims to be cost-efficient for cross-border transactions.\nAsked if the use of cryptocurrencies would not put overseas Filipino workers and their remittance recipients at risk of losing the money due to volatility, Mr. Miltenburg said there will be minimal risk since it only takes seconds to complete the transaction.\n\u201cVolatility exists across all the coins. The volatility is relatively modest. XRP to peso, the amount of exposure is seconds, very minimal. Much more volatility in PHP to USD in three days than XRP,\u201d Mr. Miltenburg said.\n\u201cWe\u2019re quite bullish on how cryptocurrency can play a great role here,\u201d he said. \u2014 Reicelene Joy N. Ignacio", "date_published": "2019-06-26T00:01:48+08:00", "date_modified": "2019-06-26T00:01:48+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "tags": [ "cryptocurrency", "Reicelene Joy N. Ignacio", "remittance", "Banking & Finance", "One News" ], "summary": "THE PHILIPPINES must take steps to make remittances more efficient, even as financial technology has improved in the country, money transfer solutions company Ripple said." }, { "id": "/?p=219998", "url": "/editors-picks/2019/03/15/219998/cash-remittances-a-key-economic-support-off-to-strong-start/", "title": "Cash remittances, a key economic support, off to strong start", "content_html": "MONEY SENT HOME by Filipinos working abroad grew at the fastest clip in three months as this year began, even as the latest amount was less than December’s record-high inflows, according to data the central bank released on Friday.
\nCash remittances increased by 4.4% to $2.484 billion in January from the year-ago $2.379 billion, even as the latest inflows were 12.8% less than December’s all-time-high $2.849 billion.
\n“This growth was in line with the increase in remittances from both land-based and sea-based workers”, who sent 2.3% and 12.7% more at $1.95 billion and $530 million, respectively, in January, the central bank said in a statement.
\nPersonal remittances, which include transfers in kind other than cash, grew 3.4% to $2.745 billion in January from $2.655 billion a year ago, even though the latest inflows were 13.05% less than December’s $3.157 billion.
\nThe latest growth rates of both personal and cash remittances, however, were slower than the 10.8% and 9.7%, respectively, clocked in January last year. Capital Economics in a note on Thursday attributed slowing remittance growth to an improving Philippine economy that has generated more jobs and an economic downturn in the Middle East that accounts for about a third of remittances.
\nSought for comment, Ruben Carlo O. Asuncion, chief economist of Union Bank of the Philippines, Inc., said in an e-mail that UnionBank’s Economic Research Unit (ERU) expected January inflows to have logged three-percent growth.
\n“This January number is actually higher-than-expected. ERU thinks that remittances growth will hover over this 3.0% this 2019. This is lower than the previous two years of 4-5% average,” Mr. Asuncion wrote.
\n“The expected decline may actually mean positive. This means that more Filipinos have opportunities here domestically and probably choose to stay here in the country. owever, it can also mean that opportunities abroad have been declining as well, particularly in the Middle East.”
\nFor Security Bank Corp. economist Robert Dan J. Roces, remittances’ year-on-year growth was “driven primarily by the higher-than-anticipated growth in contributions from the sea-based components of OF workers”.
\n“We’ve been observing the growing importance of this sector since last quarter,” Mr. Roces said via e-mail when asked for comment, adding that “[t]he growth also signals stronger domestic demand and that consumption is back, probably coming off of the slowdown we experienced last year due to high inflation”.
\nAt the same time, the month-on-month “decline is your usual tapering coming from the peak remittance season” towards Christmas, Mr. Roces said.
\nBy country source, the United States accounted for the biggest share of overall remittances at 35.5%. It was followed by Saudi Arabia, Singapore, United Kingdom, United Arab Emirates, Japan, Canada, Qatar, Hong Kong and Kuwait, the central bank reported. Combined remittances from these countries accounted for almost 78% of total cash remittances.
\nCash remittances increased by 3.1% \u2014 marking the slowest annual increase on record \u2014 to $28.943 billion last year from 2017’s $28.06 billion, a little past the central bank’s three-percent growth projection for 2018.
\nThe central bank projects these inflows to sustain three percent growth this year.
\nRemittances from abroad fuel household spending, which in turn has long been a key driver of overall economic expansion, which the government projects to steady to 6-7% this year from 6.2% in 2018 and 6.7% in 2017. \u2014 with KANV
THE GENDER GAP among senders of remittances to the Philippines narrowed in the last four years, even as female overseas Filipino workers (OFW) tend to earn less than males, a study commissioned by WorldRemit showed.
\nA survey of 1,000 Filipino customers of the digital remittance company showed that the number of female OFWs who sent money home made up 35% of WorldRemit’s clients in 2018, up from just a 25% share in 2014.
\nIn contrast, the share male OFW customers of WorldRemit shrank to 65% last year from 75% in 2014, narrowing the gender gap to 30% in 2018 from the 50% tallied in 2014.
\nThe study also showed that despite males outnumbering females in terms of customer count, female OFWs remitted a larger amount of their income compared to their male counterparts, citing education as the most important reason for sending remittances.
\nHowever, WorldRemit did not disclose the breakdown of remittances by female workers vis-\u00e0-vis male OFWs.
\n“Evidence suggests that, although female migrants tend to earn less than their male counterparts, they send a higher proportion of their income home more frequently,” WorldRemit said in a statement on Tuesday.
\nMichael Liu, WorldRemit managing director for Asia-Pacific, said ensuring digital inclusion for financial services for Filipino women is “critically important” as families, businesses and local economies thrive when women thrive as well.
\n“Our data show that women play an increasingly vital role in development of The Philippines by sending money home to support education, cover healthcare costs, make investments, and more,” Mr. Liu was quoted as saying in the statement.
\nOf the 10 million OFWs, 55% are female, with many of them living in countries such as the United States, Australia and New Zealand, WorldRemit said.
\nCentral bank data showed that money sent home by Filipinos reached a record $2.849 billion in December, up 3.9% from the inflows recorded in the same month in 2017. This brought 2018’s total inflows to $28.943 billion, up 3.1% year-on-year.
\nRemittances from OFWs make up about 10% of the country’s gross domestic product.
\nIn 2018, the US, Saudi Arabia, the United Arab Emirates, Singapore, Japan, the United Kingdom, Qatar, Canada, Germany, and Hong Kong accounted for 79% of total flows.
\nWorldRemit offers digital remittance services to Filipinos located in over 50 countries, allowing customers to send funds home through its mobile application or website. It processes over 1.3 million transactions monthly to over 145 destinations, including the Philippines. \u2014 KANV
Blockchain remittance firms are experiencing record growth thanks to an increase in global migration. As populations continue to migrate, the need to send money back to their home countries is growing. Blockchain remittance firms are providing this essential service at a reduced rate.
\nThese international payments are vital to the livelihood of millions of people around the world. They\u2019re primarily used for living expenses such as food, transportation, and education. Making these statements more tangible, East Asian countries received $129 billion in remittance payments last year according to the World Bank.
A recent study revealed that the remittance sector has grown to a staggering $585 billion industry. In 2017 alone, $439 billion was sent to developing countries, equating to around 700 million families living off of remittance payments globally.
\nRemittance payments have also become the main source of foreign income for many nations. According to a May report in Forbes, Mexico\u2019s remittance payments have now superseded their oil industry to become the country\u2019s main source of foreign income.
\nMexico isn\u2019t alone in their dependence on remittance payments. The World Bank released their 2016 remittance statistics in April of this year. The report revealed that remittance payments are now more stable than private capital flow in terms of international growth. This means that the remittance industry could be a smart investment in most parts of the world.
Sending money internationally isn\u2019t cheap, and non-profits such as the World Bank have been combating these high fees for years. Since 2008, remittance fees have declined 7.32 percent. This decrease saved migrants $90 billion in fees over the same time frame.
\nWhenever someone sends money internationally, numerous third-party organizations are involved in the transaction. Each verification step adds a small fee to the total cost. In addition, international conversion rates must be accounted for. World Bank reports have averaged these costs to be around 7.45 percent of each transaction processed.
Blockchain remittance companies are taking the industry to the next level by facilitating a frictionless experience for users. Traditionally, international money transfers can take days to complete due to the number of verifications that are required. Blockchain remittance companies provide instant money transfer services.
\nAfrica relies heavily on remittance payments. Until recently, large financial firms, such as Western Union and MoneyGram, dominated the market. This changed when blockchain remittance companies began to spring up across the continent. Firms such as Abra are now changing the local markets.
\nThe Abra platform allows users to transfer money for free across the globe. In addition to these cost savings, users are able to send transactions directly from their mobile devices. Abra offers a direct peer-to-peer money transfer technology that doesn\u2019t require the use of any bank. And, the platform automatically deposits funds onto debit cards that it provides for users.
\nAbra is pioneering remittance FinTech with this all-inclusive approach. This non-reliance on the traditional banking system is important in developing nations because they often lack the means to implement the expensive infrastructure required to institute these organizations. By circumventing the current system, Abra users don\u2019t have to worry about how to transfer money from blockchain to bank account.
\nMigrants are saving on fees and conversion rate costs by removing the middleman from the remittance system. These savings are too large to ignore, and now, industry leaders are researching this technology.
For the first time ever, this year\u2019s Global Money Transfer Summit (GMTS) will feature blockchain remittance FinTech. The GMTS is the largest international money transfer conference in the world. Every year, representatives from major financial institutions are chosen to speak at this event.
\nAmong those invitees are representatives from Ripple, Stellar, and Cashaa. These popular cryptocurrency representatives will discuss the future of the money transfer industry and why blockchain technology is an essential path for the industry to travel.
Ripple (XRP) was one of the first bank-focused cryptocurrencies to enter the market in 2012. Designed primarily for large international inter-bank money transfers, Ripple\u2019s developers describe it as a real-time gross settlement system. The Ripple platform utilizes the XRP token to facilitate these global transfers instantly.
\nRipple has managed to secure major partnerships with numerous large financial organizations including Fidor Bank in Munich, Bank of America, and Santander. In May 2015, Ripple became AML compliant after receiving a $700,000 fine from FinCEN for not complying with the Bank Secrecy Act. Today, the cryptocurrency remains in the top five coins in terms of market capitalization.
Blockchain technology is transforming the remittance sector, and Ripple isn\u2019t alone in their quest to service the international money transfer industry. Today, numerous remittance-focused cryptocurrencies are available. You can expect to see further integration of this game-changing technology.
\nNow that the industry has openly acknowledged the benefits that blockchain technology brings to the table, the demand for blockchain-based remittance services is expected to increase significantly. This is great news for the millions of families that rely on this lifeline to survive.
A version of this story by David Hamilton originally appeared on CoinCentral.com.
\n", "content_text": "Blockchain remittance firms are experiencing record growth thanks to an increase in global migration. As populations continue to migrate, the need to send money back to their home countries is growing. Blockchain remittance firms are providing this essential service at a reduced rate.\nThese international payments are vital to the livelihood of millions of people around the world. They\u2019re primarily used for living expenses such as food, transportation, and education. Making these statements more tangible, East Asian countries received $129 billion in remittance payments last year according to the World Bank.\nRemittance Stats\nA recent study revealed that the remittance sector has grown to a staggering $585 billion industry. In 2017 alone, $439 billion was sent to developing countries, equating to around 700 million families living off of remittance payments globally.\nRemittance payments have also become the main source of foreign income for many nations. According to a May report in Forbes, Mexico\u2019s remittance payments have now superseded their oil industry to become the country\u2019s main source of foreign income.\nMexico isn\u2019t alone in their dependence on remittance payments. The World Bank released their 2016 remittance statistics in April of this year. The report revealed that remittance payments are now more stable than private capital flow in terms of international growth. This means that the remittance industry could be a smart investment in most parts of the world.\nThe High Costs of Sending Remittance Payments\nSending money internationally isn\u2019t cheap, and non-profits such as the World Bank have been combating these high fees for years. Since 2008, remittance fees have declined 7.32 percent. This decrease saved migrants $90 billion in fees over the same time frame.\nWhenever someone sends money internationally, numerous third-party organizations are involved in the transaction. Each verification step adds a small fee to the total cost. In addition, international conversion rates must be accounted for. World Bank reports have averaged these costs to be around 7.45 percent of each transaction processed.\nBlockchain Remittance Fintech: Technology to Help Millions\nBlockchain remittance companies are taking the industry to the next level by facilitating a frictionless experience for users. Traditionally, international money transfers can take days to complete due to the number of verifications that are required. Blockchain remittance companies provide instant money transfer services.\nRemittance Firms: Abra\nAfrica relies heavily on remittance payments. Until recently, large financial firms, such as Western Union and MoneyGram, dominated the market. This changed when blockchain remittance companies began to spring up across the continent. Firms such as Abra are now changing the local markets.\nThe Abra platform allows users to transfer money for free across the globe. In addition to these cost savings, users are able to send transactions directly from their mobile devices. Abra offers a direct peer-to-peer money transfer technology that doesn\u2019t require the use of any bank. And, the platform automatically deposits funds onto debit cards that it provides for users.\nAbra is pioneering remittance FinTech with this all-inclusive approach. This non-reliance on the traditional banking system is important in developing nations because they often lack the means to implement the expensive infrastructure required to institute these organizations. By circumventing the current system, Abra users don\u2019t have to worry about how to transfer money from blockchain to bank account.\nMigrants are saving on fees and conversion rate costs by removing the middleman from the remittance system. These savings are too large to ignore, and now, industry leaders are researching this technology.\nBlockchain Remittance on the Rise\nFor the first time ever, this year\u2019s Global Money Transfer Summit (GMTS) will feature blockchain remittance FinTech. The GMTS is the largest international money transfer conference in the world. Every year, representatives from major financial institutions are chosen to speak at this event.\nAmong those invitees are representatives from Ripple, Stellar, and Cashaa. These popular cryptocurrency representatives will discuss the future of the money transfer industry and why blockchain technology is an essential path for the industry to travel.\nRemittance Cryptocurrencies: Ripple\nRipple (XRP) was one of the first bank-focused cryptocurrencies to enter the market in 2012. Designed primarily for large international inter-bank money transfers, Ripple\u2019s developers describe it as a real-time gross settlement system. The Ripple platform utilizes the XRP token to facilitate these global transfers instantly.\nRipple has managed to secure major partnerships with numerous large financial organizations including Fidor Bank in Munich, Bank of America, and Santander. In May 2015, Ripple became AML compliant after receiving a $700,000 fine from FinCEN for not complying with the Bank Secrecy Act. Today, the cryptocurrency remains in the top five coins in terms of market capitalization.\nRemittance Fintech: A New Horizon\nBlockchain technology is transforming the remittance sector, and Ripple isn\u2019t alone in their quest to service the international money transfer industry. Today, numerous remittance-focused cryptocurrencies are available. You can expect to see further integration of this game-changing technology.\nNow that the industry has openly acknowledged the benefits that blockchain technology brings to the table, the demand for blockchain-based remittance services is expected to increase significantly. This is great news for the millions of families that rely on this lifeline to survive.\n\nA version of this story by David Hamilton originally appeared on CoinCentral.com.", "date_published": "2018-09-12T21:33:59+08:00", "date_modified": "2018-09-12T21:33:59+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "blockchain", "Money", "remittance" ], "summary": "Sending money becomes faster, more secure on the blockchain." }, { "id": "http://www.bworldonline.com/?p=175086", "url": "/breaking-news/2018/07/24/175086/e-payments-firm-truemoney-ties-up-with-worldremit-for-remittance-service/", "title": "E-payments firm TrueMoney ties up with WorldRemit for remittance service", "content_html": "Electronic payment service provider TrueMoney Philippines has partnered with WorldRemit to launch an international remittance service in the country.
\nXavier Marzan, TrueMoney Philippines founder and president, said the tie-up will enable Filipinos living in urban and far-flung areas to receive remittances from more than 50 countries.
\nTransmitted funds will be available for collection at TrueMoney’s network of 14,000 receiving centers nationwide. — Karl Angelo N. Vidal
OVERSEAS Filipino workers (OFWs) sent more money home in April, clocking the fastest growth in over a year on the back of a weaker peso, the central bank reported on Monday.
\nCash remittances reached $2.347 billion that month, up 12.7% from the $2.083-billion inflows recorded in April 2017 to post the biggest increase since an 18.5% growth seen in November 2016, according to the Bangko Sentral ng Pilipinas (BSP).
\nThe amount, however, was still smaller than the $2.36 billion wired by OFWs in March.
\nThe year-on-year growth compares to a 5.9% annual decline in remittances that marked April last year.
\n![\"Remittance\"](\"http://www.bworldonline.com/wp-content/uploads/2018/06/Remittance_061918.jpg\")
\nIn a statement, the BSP attributed the increase to a 15.1% jump to $1.8 billion in bank transfers from land-based OFWs. Those working at sea wired home $500 million, picking up by 4.8% year-on-year.
\nFilipinos working in the United States, Canada and Singapore accounted for bulk of funds sent home that month, the central bank added.
\nApril\u2019s figure brought year-to-date remittances to $9.353 billion, 3.5% more than the $9.036-billion inflows received in the same period in 2017.
\nThe biggest sources of remittances year-to-date have been OFWs in the US ($3.167 billion), Saudi Arabia ($745.771 million), United Arab Emirates ($733.906 million), Singapore ($581.005 million), Japan ($510.665 million) and the United Kingdom ($468.996 million).
\nMORE CASH TO SPEND
\nRemittances give Filipino households more cash to spend, in turn fueling overall economic growth.
\n\u201cIt seems that there is a correlation between the peso weakness and remittances,\u201d said Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc.
\n\u201cThe probability that more remittances will flow into the economic system is high when more peso is exchanged for foreign currency, particularly the US dollar.\u201d
\nThe peso averaged P52.0986 to greenback in April, compared to P49.8626 in April 2017.
\n\u201cI did expect remittances inflows to be stronger this Q2,\u201d Mr. Asuncion said. \u201cThis higher April data\u2026 can impact a stronger Q2 growth that may be higher than Q1, which is within our forecast.\u201d
\nThe Philippine economy expanded by 6.8% in January-March as household spending — which has historically accounted for more than 60% of gross domestic product — contributed 3.9 percentage points to growth. — Melissa Luz T. Lopez
Overseas Filipino workers (OFWs) sent more money home in February although at a slower pace from the previous month, the central bank reported on Monday, April 16.
\nRemittances totalled $2.267 billion for the month, up 4.5% from the $2.169 billion inflows tallied in February 2017, the Bangko Sentral ng Pilipinas (BSP) said. However, the figure slipped from the $2.379 billion cash transfers received in January.
\nFebruary\u2019s growth pace is likewise the slowest in three months since a two percent increase recorded in November, data showed.
By Melissa Luz T. Lopez
\nSenior Reporter
CASH REMITTANCES increased annually for a second straight month in November last year but at a slower pace, the central bank reported yesterday, as overseas Filipino workers (OFWs) likely held on to their cash given a stronger exchange rate.
\nMoney sent home by migrant workers totalled $2.262 billion that month, smaller than the $2.275 billion inflows recorded in October though two percent more than November 2016\u2019s $2.217 billion, the Bangko Sentral ng Pilipinas (BSP) said.
\nWhile monthly inflows have stayed above $2 billion since February 2016, November 2017\u2019s rise was slower than the year-ago\u2019s 18.5% surge and October last year\u2019s 8.4%, according to BSP data.
\nRemittances coursed through banks totaled $25.318 billion as of November, 4.0% more than the $24.341 billion recorded in 2016\u2019s comparable 11 months. This growth pace matches the central bank\u2019s forecast for the entire year, during which it expects total remittances to hit a fresh high at $28 billion.
\nThe United States and Germany were the biggest sources of remittances in November alone.
\nLand-based OFWs sent 3.7% more money over the preceding year, while those working at sea wired 5.1% more than in 2016.
\nSought for comment, a bank analyst said the stronger peso and easing price pressures on basic goods may have prompted overseas workers to send less money to their families in the Philippines.
\n\u201cI think the slowdown in overseas Filipinos (OF) remittance growth for November was partly induced by a monthly appreciation in the Philippine peso vis-a-vis the US dollar as well as a moderation in inflationary pressures,\u201d said Angelo B. Taningco, economist at Security Bank Corp. \u201c[T]he stronger peso would tend to have discouraged OF remittances.\u201d
\nThe peso averaged P51.0384 versus the dollar in November, posting a slight recovery from the previous month\u2019s P51.3433 as it traded at the P50 level against the greenback. The local currency touched fresh 11-year-lows in October as the peso traded above the P51 level against the greenback. A stronger peso-dollar rate meant that foreign currencies sent by OFWs are worth less once converted to pesos.
\nDomestic inflation also eased to 3.3% in November from October\u2019s three-year peak of 3.5%, reflecting moderate overall price increases.
\nMr. Taningco said remittance growth likely remained \u201cmodest\u201d in December, as inflation steadied while the peso traded around the P49:$1 mark.
\n\u201cWith this, I believe OF remittances\u2019 contribution to household consumption and economic growth during the fourth quarter of last year may have been modest also,\u201d the bank economist added.
\nRemittances support domestic consumption, which in turn spurs overall economic growth. The Philippine economy expanded by 6.9% in the third quarter, pulling the nine-month climb to 6.7% against the government\u2019s 6.5-7.5% full-year target for 2017.
\n![\"Remittance](\"http://www.bworldonline.com/wp-content/uploads/2018/01/Remittance_011618.jpg\")
By Melissa Luz T. Lopez, Senior Reporter
\nREMITTANCES from overseas Filipino workers (OFWs) likely grew at a slower pace in November ahead of an expected surge the following month, HSBC Global Research said, adding that the indicator is on track to post another record for 2017.
\nHSBC economists expect remittances to pick up by 4.7% in November from a year earlier. If the projection pans out, it would represent a slowdown from the 8.4% increase logged in October, but monthly inflows will remain above $2 billion to sustain a trend seen since February 2016.
\n\u201cThis is partly driven by base effects, as remittances were unusually high in November 2016,\u201d HSBC economists said in a report, referring to the 5.2% rise a year earlier.
\nThe Bangko Sentral ng Pilipinas (BSP) will release the remittances data today. Money sent home by OFWs hit $23.056 billion in the 10 months to October 2017, up 4.2% from a year earlier.
\nRemittances support domestic consumption \u2014 which, in turn, fuels overall economic growth.
\nDespite the slower growth expected for the month, HSBC analysts said this provides more room for higher remittance growth just before the year\u2019s end.
\n\u201cThis also sets us up for potentially high remittances in December, since remittances growth in 2017 reported thus far has been below its pace from the previous year,\u201d the bank economists added. \u201cWe expect 2017\u2019s average remittance growth to at least match 2016\u2019s pace (5.4% average per month), which calls for higher remittances at the end of the year.\u201d
\nRemittances peak every December as OFWs send more money for their families to spend during Christmas. However, a new record was reached in March 2017 when inflows hit $2.615 billion as migrant workers took advantage of a weaker peso so their remittances could go a longer way in peso terms.
\nThe BSP expects full-year cash remittances to rise 4% from the $26.9 billion logged in 2016 to hit $28 billion.
\nThe steady stream of worker remittances, coupled with business process outsourcing revenue, tourism receipts, and increasing investment flows are expected to support the country\u2019s external position, as these will balance out increased importation and keep the trade balance at a narrow deficit.
\n", "content_text": "By Melissa Luz T. Lopez, Senior Reporter\nREMITTANCES from overseas Filipino workers (OFWs) likely grew at a slower pace in November ahead of an expected surge the following month, HSBC Global Research said, adding that the indicator is on track to post another record for 2017.\nHSBC economists expect remittances to pick up by 4.7% in November from a year earlier. If the projection pans out, it would represent a slowdown from the 8.4% increase logged in October, but monthly inflows will remain above $2 billion to sustain a trend seen since February 2016.\n\u201cThis is partly driven by base effects, as remittances were unusually high in November 2016,\u201d HSBC economists said in a report, referring to the 5.2% rise a year earlier.\nThe Bangko Sentral ng Pilipinas (BSP) will release the remittances data today. Money sent home by OFWs hit $23.056 billion in the 10 months to October 2017, up 4.2% from a year earlier.\nRemittances support domestic consumption \u2014 which, in turn, fuels overall economic growth.\nDespite the slower growth expected for the month, HSBC analysts said this provides more room for higher remittance growth just before the year\u2019s end.\n\u201cThis also sets us up for potentially high remittances in December, since remittances growth in 2017 reported thus far has been below its pace from the previous year,\u201d the bank economists added. \u201cWe expect 2017\u2019s average remittance growth to at least match 2016\u2019s pace (5.4% average per month), which calls for higher remittances at the end of the year.\u201d\nRemittances peak every December as OFWs send more money for their families to spend during Christmas. However, a new record was reached in March 2017 when inflows hit $2.615 billion as migrant workers took advantage of a weaker peso so their remittances could go a longer way in peso terms.\nThe BSP expects full-year cash remittances to rise 4% from the $26.9 billion logged in 2016 to hit $28 billion.\nThe steady stream of worker remittances, coupled with business process outsourcing revenue, tourism receipts, and increasing investment flows are expected to support the country\u2019s external position, as these will balance out increased importation and keep the trade balance at a narrow deficit.", "date_published": "2018-01-15T00:08:53+08:00", "date_modified": "2018-01-15T00:08:53+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "Bank", "OFW", "remittance", "Economy", "Editors' Picks" ] }, { "id": "http://www.bworldonline.com/?p=96812", "url": "/editors-picks/2017/12/27/96812/digital-remittance-firms-looking-expand-phl-presence/", "title": "Digital remittance firms looking to expand PHL presence", "content_html": "DIGITAL REMITTANCE companies have set their sights on expanding their presence in the Philippines, with the country being one of their key markets in the region.
\nIn an interview, an official of digital remittance company Remitly said it is high time for the firm to bolster its presence in the country, as they consider the Philippines as their \u201cmost mature market.\u201d
\n\u201cIt makes perfect sense for Remitly to bolster operations here,\u201d Karim Meghji, Global chief product officer of Remitly, said.
\nIn an effort to increase its presence in the country, the official said the company has started hiring people to be part of its technology team.
\n\u201cWe actually just started to have a technology team here in the Philippines. We\u2019re starting to track technology talents here that can help us with our expansion goals over the next few years,\u201d Mr. Meghji said.
\nRemitly recently launched products that cater specifically to needs of Filipino consumers, such as a service by which Filipino seafarers can send money without leaving their ships, saving as much as 8% in remittance costs.
\nMr. Meghji added that the Philippine market is a good place to test new products as the country is receptive to innovations.
\n\u201cThis market has shaken a lot of what we have done in our markets. This market helped us to learn what customers wanted,\u201d he said.
\nHe cited Remitly\u2019s service enabling customers to remit to a digital wallet, which eventually failed.
\n\u201cWe thought that digital wallet is the way we\u2019re going to transform the remittance business \u2014 that\u2019s why it is very important for us to have that early on in this market,\u201d he noted.
\nRemitly started its operations here in 2011 as a company that remitted dollars from US to the Philippines using digital means. The company has already handled a total transaction volume worth \u201cless than a billion [dollars].\u201d
\nRemitly also allows clients to send money here as well as to India, Mexico and some Latin American countries from United States, United Kingdom and Canada. It is also eyeing to set foot in some markets in Southeast Asia and Europe.
\nWORLDREMIT
\nDigital remittance system WorldRemit is also looking at expanding its Philippine network following a round of capital raising.
In a statement, WorldRemit said it raised $40 million in its third round of capital raising. The funds will be used in establishing a new regional center in the country, as well as expanding its mobile-first digital service into new markets.
\n\u201cThis new funding will not only allow us to expand our network and service in the Philippines, but also build our regional [center] which will allow us to create more jobs for the country\u2019s economy as well as [to] improve our service to customers globally,\u201d WorldRemit Regional Director for Asia-Pacific Michael Liu was quoted as saying in a statement.
\nWorldRemit said the Philippines is the company\u2019s largest receiving country, as it sends funds from 50 countries from 148 receiving ends.
\nAccording to the World Bank, the Philippines is the third largest remittance receiving countries, trailing behind India and China. 2016 data from the same monetary authority also shows that 10.2% of the country\u2019s gross domestic product came from personal remittances. —\u00a0Karl Angelo N. Vidal
\n", "content_text": "DIGITAL REMITTANCE companies have set their sights on expanding their presence in the Philippines, with the country being one of their key markets in the region.\nIn an interview, an official of digital remittance company Remitly said it is high time for the firm to bolster its presence in the country, as they consider the Philippines as their \u201cmost mature market.\u201d\n\u201cIt makes perfect sense for Remitly to bolster operations here,\u201d Karim Meghji, Global chief product officer of Remitly, said.\nIn an effort to increase its presence in the country, the official said the company has started hiring people to be part of its technology team.\n\u201cWe actually just started to have a technology team here in the Philippines. We\u2019re starting to track technology talents here that can help us with our expansion goals over the next few years,\u201d Mr. Meghji said.\nRemitly recently launched products that cater specifically to needs of Filipino consumers, such as a service by which Filipino seafarers can send money without leaving their ships, saving as much as 8% in remittance costs.\nMr. Meghji added that the Philippine market is a good place to test new products as the country is receptive to innovations.\n\u201cThis market has shaken a lot of what we have done in our markets. This market helped us to learn what customers wanted,\u201d he said.\nHe cited Remitly\u2019s service enabling customers to remit to a digital wallet, which eventually failed.\n\u201cWe thought that digital wallet is the way we\u2019re going to transform the remittance business \u2014 that\u2019s why it is very important for us to have that early on in this market,\u201d he noted.\nRemitly started its operations here in 2011 as a company that remitted dollars from US to the Philippines using digital means. The company has already handled a total transaction volume worth \u201cless than a billion [dollars].\u201d\nRemitly also allows clients to send money here as well as to India, Mexico and some Latin American countries from United States, United Kingdom and Canada. It is also eyeing to set foot in some markets in Southeast Asia and Europe.\nWORLDREMIT\nDigital remittance system WorldRemit is also looking at expanding its Philippine network following a round of capital raising.\nIn a statement, WorldRemit said it raised $40 million in its third round of capital raising. The funds will be used in establishing a new regional center in the country, as well as expanding its mobile-first digital service into new markets.\n\u201cThis new funding will not only allow us to expand our network and service in the Philippines, but also build our regional [center] which will allow us to create more jobs for the country\u2019s economy as well as [to] improve our service to customers globally,\u201d WorldRemit Regional Director for Asia-Pacific Michael Liu was quoted as saying in a statement.\nWorldRemit said the Philippines is the company\u2019s largest receiving country, as it sends funds from 50 countries from 148 receiving ends.\nAccording to the World Bank, the Philippines is the third largest remittance receiving countries, trailing behind India and China. 2016 data from the same monetary authority also shows that 10.2% of the country\u2019s gross domestic product came from personal remittances. —\u00a0Karl Angelo N. Vidal", "date_published": "2017-12-27T00:14:00+08:00", "date_modified": "2017-12-27T00:14:00+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "Bank", "OFW", "Remitly", "remittance", "Banking & Finance", "Editors' Picks" ] }, { "id": "http://www.bworldonline.com/?p=92757", "url": "/editors-picks/2017/12/16/92757/remittances-rise-2-27b-october/", "title": "Remittances rise to $2.27B in October", "content_html": "By Melissa Luz T. Lopez, Senior Reporter
\nCASH remittances recovered in October to a two-month high, the central bank reported on Friday, as overseas Filipino workers (OFWs) took advantage of a weaker peso to get more out of their funds.
\nMoney sent home by migrant workers reached $2.275 billion that month, up by 8.4% from $2.099 billion inflows in October 2016, the Bangko Sentral ng Pilipinas (BSP) said.
\nThe amount is the biggest since August\u2019s $2.499 billion \u2014 when remittances fell by 3% \u2014 and is the sharpest climb since a 10.7% increase in March.
\nThis brought the 10-month tally to $23.056 billion, posting a 4.2% rise from the $22.124 billion during the comparable period last year. This is more robust than the 4% growth expected for remittances for the entire year, which would settle at $28 billion.
\nIn a statement, the central bank attributed the pickup in remittances to a 4.2% increase in amounts sent by both land-based and sea-based workers.
\nIn a press briefing, BSP Deputy Governor Diwa C. Guinigundo said OFWs \u201ccould have taken advantage\u201d of the sustained depreciation of the peso during the period, as well as the continued deployment of Filipinos abroad.
\nOctober saw the peso trade at 11-year-lows, even hitting a peak of P51.77 to a dollar on Oct. 25. The local unit averaged at P51.3433 versus the greenback during the month, according to BSP data.
\nA weaker exchange rate meant dollars sent home by OFWs carry bigger values once converted to the local currency, arming their families with more money to spend.
\n\u201c[T]his October 8.4% increase is very strong. I highly suspect that OFWs have been taking advantage of the weak peso,\u201d added Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines.
\n\u201cIn terms of the BSP goal, I expect 2017 remittances levels will be higher than 2016. The momentum is there and I am quite confident the goal will be met.\u201d
\nThe remittances tally in October likewise rebounded from an 8.3% decline in the previous month, when more Filipinos in Saudi Arabia opted to go home under an amnesty program for undocumented workers.
\nA total of 8,467 OFWs availed of the repatriation program as of end-September, according to data from the Department of Foreign Affairs.
\nThe United Arab Emirates is the biggest source of remittances in October, the central bank said. Other major sources of remittances are the United States, Saudi Arabia, Singapore, and Japan.
\nRemittances support domestic consumption, which in turn spurs overall economic growth.
\n", "content_text": "By Melissa Luz T. Lopez, Senior Reporter\nCASH remittances recovered in October to a two-month high, the central bank reported on Friday, as overseas Filipino workers (OFWs) took advantage of a weaker peso to get more out of their funds.\nMoney sent home by migrant workers reached $2.275 billion that month, up by 8.4% from $2.099 billion inflows in October 2016, the Bangko Sentral ng Pilipinas (BSP) said.\nThe amount is the biggest since August\u2019s $2.499 billion \u2014 when remittances fell by 3% \u2014 and is the sharpest climb since a 10.7% increase in March.\nThis brought the 10-month tally to $23.056 billion, posting a 4.2% rise from the $22.124 billion during the comparable period last year. This is more robust than the 4% growth expected for remittances for the entire year, which would settle at $28 billion.\nIn a statement, the central bank attributed the pickup in remittances to a 4.2% increase in amounts sent by both land-based and sea-based workers.\nIn a press briefing, BSP Deputy Governor Diwa C. Guinigundo said OFWs \u201ccould have taken advantage\u201d of the sustained depreciation of the peso during the period, as well as the continued deployment of Filipinos abroad.\nOctober saw the peso trade at 11-year-lows, even hitting a peak of P51.77 to a dollar on Oct. 25. The local unit averaged at P51.3433 versus the greenback during the month, according to BSP data.\nA weaker exchange rate meant dollars sent home by OFWs carry bigger values once converted to the local currency, arming their families with more money to spend.\n\u201c[T]his October 8.4% increase is very strong. I highly suspect that OFWs have been taking advantage of the weak peso,\u201d added Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines.\n\u201cIn terms of the BSP goal, I expect 2017 remittances levels will be higher than 2016. The momentum is there and I am quite confident the goal will be met.\u201d\nThe remittances tally in October likewise rebounded from an 8.3% decline in the previous month, when more Filipinos in Saudi Arabia opted to go home under an amnesty program for undocumented workers.\nA total of 8,467 OFWs availed of the repatriation program as of end-September, according to data from the Department of Foreign Affairs.\nThe United Arab Emirates is the biggest source of remittances in October, the central bank said. Other major sources of remittances are the United States, Saudi Arabia, Singapore, and Japan.\nRemittances support domestic consumption, which in turn spurs overall economic growth.", "date_published": "2017-12-16T00:31:21+08:00", "date_modified": "2017-12-16T00:31:21+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "Bank", "dollar", "OFW", "peso", "remittance", "Editors' Picks", "大象传媒" ] }, { "id": "http://www.bworldonline.com/?p=77661", "url": "/editors-picks/2017/11/16/77661/sept-remittances-smaller-year-date-flows/", "title": "Sept. remittances smaller; year-to-date flows up", "content_html": "By Melissa Luz T. Lopez
\nSenior Reporter
MONEY SENT HOME by Filipinos abroad dropped in September to a five-month low as Saudi Arabia sent more overseas Filipino workers (OFWs) back home under an extended repatriation program, the central bank reported yesterday, although year-to-date flows were still bigger than a year ago.
\n![\"Sept.](\"http://www.www.bworldonline.com/wp-content/uploads/2017/11/Remittance_111617.png\")
OFW remittances totalled $2.186 billion that month, slipping by 8.3% from the year-ago $2.383 billion, the Bangko Sentral ng Pilipinas (BSP) said.
\nSeptember inflows were the smallest since April\u2019s $2.083 billion remittances and reflected the steepest fall in over a decade since a 10.9% drop in April 2003.
\nThe BSP said remittances from land-based workers slipped by 11.7%, offseting a six percent increase in money sent by those working at sea.
\nThe decline was largely due to lower amounts sent by those based in Saudi Arabia, which saw thousands of Filipinos suddenly head home.
\n\u201c[T]he decline in remittances could partly be the result of the continued repatriation of overseas Filipino workers under the Saudi Arabian Amnesty Program which started last March 2017,\u201d the central bank said in a statement, noting that the repatriation program has been extended effective Sept. 26.
\nCiting data from the Department of Foreign Affairs, the central bank said that a total of 8,467 undocumented OFWs availed of the program, which allowed them to return to the Philippines without penalty from the foreign government.
\nThe BSP also attributed the drop in remittances to terminated arrangements between global banks and money service businesses, with more of the former choosing to end correspondent banking relationships in the face of perceived increased risks.
\nDespite the slip in September remittances, the nine-month tally still grew to $20.781 billion, up by 3.8% from the $20.025 billion posted during the same period in 2016.
\nHowever, this was below the central bank\u2019s forecast of a four percent growth for the entire year.
\nThe United States remained the biggest source of remittances between January and September worth $6.963 billion, accounting for a third of the total.
\nSaudi Arabia came second with $1.895 billion, although 3.5% less than last year due the repatriation of illegal workers.
\nOther major sources of funds were the United Arab Emirates ($1.874 billion), Singapore ($1.311 billion), Japan ($1.084 billion), and the United Kingdom ($1.002 billion), the BSP said.
\nRemittances support household consumption, which drives more three-fifths of national economic output.
\nYesterday\u2019s data bared a 1.976% year-on-year increase in cash remittances in the third quarter, slightly faster than the second quarter\u2019s 1.856% hike but still much slower than January-March\u2019s 7.682%.
\nThe central bank\u2019s September remittance report came a day ahead of the Philippine Statistics Authority\u2019s scheduled third-quarter gross domestic product report today. A 大象传媒 poll of economists yielded a 6.6% median forecast for the quarter, fueled by robust consumption and improving public spending.
\n", "content_text": "By Melissa Luz T. Lopez\nSenior Reporter\nMONEY SENT HOME by Filipinos abroad dropped in September to a five-month low as Saudi Arabia sent more overseas Filipino workers (OFWs) back home under an extended repatriation program, the central bank reported yesterday, although year-to-date flows were still bigger than a year ago.\n\nOFW remittances totalled $2.186 billion that month, slipping by 8.3% from the year-ago $2.383 billion, the Bangko Sentral ng Pilipinas (BSP) said.\nSeptember inflows were the smallest since April\u2019s $2.083 billion remittances and reflected the steepest fall in over a decade since a 10.9% drop in April 2003.\nThe BSP said remittances from land-based workers slipped by 11.7%, offseting a six percent increase in money sent by those working at sea.\nThe decline was largely due to lower amounts sent by those based in Saudi Arabia, which saw thousands of Filipinos suddenly head home.\n\u201c[T]he decline in remittances could partly be the result of the continued repatriation of overseas Filipino workers under the Saudi Arabian Amnesty Program which started last March 2017,\u201d the central bank said in a statement, noting that the repatriation program has been extended effective Sept. 26.\nCiting data from the Department of Foreign Affairs, the central bank said that a total of 8,467 undocumented OFWs availed of the program, which allowed them to return to the Philippines without penalty from the foreign government.\nThe BSP also attributed the drop in remittances to terminated arrangements between global banks and money service businesses, with more of the former choosing to end correspondent banking relationships in the face of perceived increased risks.\nDespite the slip in September remittances, the nine-month tally still grew to $20.781 billion, up by 3.8% from the $20.025 billion posted during the same period in 2016.\nHowever, this was below the central bank\u2019s forecast of a four percent growth for the entire year.\nThe United States remained the biggest source of remittances between January and September worth $6.963 billion, accounting for a third of the total.\nSaudi Arabia came second with $1.895 billion, although 3.5% less than last year due the repatriation of illegal workers.\nOther major sources of funds were the United Arab Emirates ($1.874 billion), Singapore ($1.311 billion), Japan ($1.084 billion), and the United Kingdom ($1.002 billion), the BSP said.\nRemittances support household consumption, which drives more three-fifths of national economic output.\nYesterday\u2019s data bared a 1.976% year-on-year increase in cash remittances in the third quarter, slightly faster than the second quarter\u2019s 1.856% hike but still much slower than January-March\u2019s 7.682%.\nThe central bank\u2019s September remittance report came a day ahead of the Philippine Statistics Authority\u2019s scheduled third-quarter gross domestic product report today. A 大象传媒 poll of economists yielded a 6.6% median forecast for the quarter, fueled by robust consumption and improving public spending.", "date_published": "2017-11-16T00:31:47+08:00", "date_modified": "2017-11-16T00:31:47+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "BSP", "migrant workers", "OFW", "remittance", "remittances", "Editors' Picks", "大象传媒" ] }, { "id": "http://www.bworldonline.com/?p=76410", "url": "/editors-picks/2017/11/14/76410/duterte-puts-security-risks-front-center/", "title": "Duterte puts security risks front and center", "content_html": "PRESIDENT Rodrigo R. Duterte, representing the chair this year of the Association of Southeast Asian Nations (ASEAN), yesterday set the stage for the bloc\u2019s 31st summit by putting security threats front and center in remarks at the opening ceremony.
\n![\"ASEAN](\"http://www.www.bworldonline.com/wp-content/uploads/2017/11/ASEAN50-111317.png\")
Recalling the costly siege of Marawi City by Islamic State-inspired militants, Mr. Duterte said: \u201cI apologize for setting the tone of my statement in such a manner.\u201d
\n\u201c\u2026[T]errorism and violent extremism endanger the peace, stability and security of our region because these threats know no boundaries,\u201d he said.
\n\u201cPiracy and armed robbery\u2026 put a dent on our growth and disrupt the stability of both regional and global commerce,\u201d he added.
\n\u201cThe menace of illegal drug trade continues to endanger the very fabric of our societies.\u201d
\nAt the same time, he said, to be signed today is a \u201clandmark\u201d ASEAN Consensus on the Protection and Promotion of the Rights of Migrant Workers designed to strengthen regional cooperation on preventing abuses, exploitation and violence towards migrant workers, whose remittances are an anchor of the Philippine economy.
\nBut while Mr. Duterte tried to keep the South China Sea maritime dispute off the menu for talks at the summit plenary — saying in a speech last Sunday that \u201cthe South China Sea is better left untouched\u201d — Presidential Spokesperson Harry L. Roque, Jr. said in a press briefing yesterday that \u201cat least two to three\u201d ASEAN leaders raised the matter.
\nA draft of a statement to be released after ASEAN-China talks, which Reuters obtained, showed that Southeast Asia will not take a relative calm in the dispute over the South China Sea for granted.
\n\u201cWhile the situation is calmer now, we cannot take the current progress for granted,\u201d the draft read. \u201cImportant that we cooperate to maintain peace, stability, freedom of navigation in and over-flight above the SCS (South China Sea), in accordance with international law. It is in our collective interest to avoid miscalculations that could lead to escalation of tensions.\u201d
\nIt will be recalled that the ASEAN leaders\u2019 statement at the end of their 30th summit last April had struck out at the last minute a draft\u2019s mention of \u201cland reclamation and militarization that may further complicate the situation…\u201d in a clear reference to China\u2019s building of an artificial isle and installation of weapons systems, as well as runways and other facilities a little more than 200 kilometers west of Palawan that could accommodate military aircraft.
\nAt the same time, that final statement then retained a reference to division among ASEAN leaders on how to deal with Beijing\u2019s assertiveness in the South China Sea. \u201cWe took note of concerns expressed by some leaders over recent developments in the area,\u201d it had read.
\nAlmost all of the South China Sea, one of the world\u2019s busiest waterways, is claimed by China. Taiwan and four ASEAN nations — Malaysia, Vietnam, the Philippines and Brunei — have competing claims.
\nSENSITIVE ISSUE
\nMoreover, a draft of the statement to be issued after the summit makes no mention of the exodus of Rohingya Muslims from Myanmar\u2019s Rakhine state following a military crackdown that has been described by the United Nations as ethnic cleansing.
One paragraph of the communique, seen by Reuters on Monday, mentions the importance of humanitarian relief provided for victims of natural disasters in Vietnam and a recent urban battle with Islamist militants in the Philippines, as well as \u201caffected communities\u201d in northern Rakhine state.
\nThe statement was drawn up by the Philippines.
\nThe draft did not give any details of the situation in northern Rakhine or use the term Rohingya for the persecuted Muslim minority, which Myanmar leader Aung San Suu Kyi has asked foreign leaders to avoid.
\nThe government in mostly Buddhist Myanmar regards the Rohingya as illegal migrants from Bangladesh and does not recognize the term.
\nWell over 600,000 Rohingya have fled to Bangladesh to find shelter in refugee camps after military clearance operations were launched in response to attacks by Rohingya militants on security posts on Aug. 25.
\nThe plight of the Rohingya has brought outrage from around the world and there have been calls for democracy champion Ms. Suu Kyi to be stripped of the Nobel Peace Prize she won in 1991 because she has not condemned the Myanmar military\u2019s actions.
\nIn September, United Nations Secretary-General Antonio Guterres said the situation in Rakhine was best described as ethnic cleansing.
\nSome members of ASEAN, particularly Muslim-majority Malaysia, have voiced concern. However, in keeping with ASEAN\u2019s principle of non-interference in the internal affairs of one another, the issue appears to have been put aside at the summit.
\nIn September, Malaysia disavowed a statement issued by the Philippines on behalf of ASEAN\u2019s foreign ministers as misrepresenting \u201cthe reality\u201d because it did not identify the Rohingya as an affected community in Rakhine state. — with Reuters reports
\n", "content_text": "PRESIDENT Rodrigo R. Duterte, representing the chair this year of the Association of Southeast Asian Nations (ASEAN), yesterday set the stage for the bloc\u2019s 31st summit by putting security threats front and center in remarks at the opening ceremony.\n\nRecalling the costly siege of Marawi City by Islamic State-inspired militants, Mr. Duterte said: \u201cI apologize for setting the tone of my statement in such a manner.\u201d\n\u201c\u2026[T]errorism and violent extremism endanger the peace, stability and security of our region because these threats know no boundaries,\u201d he said.\n\u201cPiracy and armed robbery\u2026 put a dent on our growth and disrupt the stability of both regional and global commerce,\u201d he added.\n\u201cThe menace of illegal drug trade continues to endanger the very fabric of our societies.\u201d\nAt the same time, he said, to be signed today is a \u201clandmark\u201d ASEAN Consensus on the Protection and Promotion of the Rights of Migrant Workers designed to strengthen regional cooperation on preventing abuses, exploitation and violence towards migrant workers, whose remittances are an anchor of the Philippine economy.\nBut while Mr. Duterte tried to keep the South China Sea maritime dispute off the menu for talks at the summit plenary — saying in a speech last Sunday that \u201cthe South China Sea is better left untouched\u201d — Presidential Spokesperson Harry L. Roque, Jr. said in a press briefing yesterday that \u201cat least two to three\u201d ASEAN leaders raised the matter.\nA draft of a statement to be released after ASEAN-China talks, which Reuters obtained, showed that Southeast Asia will not take a relative calm in the dispute over the South China Sea for granted.\n\u201cWhile the situation is calmer now, we cannot take the current progress for granted,\u201d the draft read. \u201cImportant that we cooperate to maintain peace, stability, freedom of navigation in and over-flight above the SCS (South China Sea), in accordance with international law. It is in our collective interest to avoid miscalculations that could lead to escalation of tensions.\u201d\nIt will be recalled that the ASEAN leaders\u2019 statement at the end of their 30th summit last April had struck out at the last minute a draft\u2019s mention of \u201cland reclamation and militarization that may further complicate the situation…\u201d in a clear reference to China\u2019s building of an artificial isle and installation of weapons systems, as well as runways and other facilities a little more than 200 kilometers west of Palawan that could accommodate military aircraft.\nAt the same time, that final statement then retained a reference to division among ASEAN leaders on how to deal with Beijing\u2019s assertiveness in the South China Sea. \u201cWe took note of concerns expressed by some leaders over recent developments in the area,\u201d it had read.\nAlmost all of the South China Sea, one of the world\u2019s busiest waterways, is claimed by China. Taiwan and four ASEAN nations — Malaysia, Vietnam, the Philippines and Brunei — have competing claims.\nSENSITIVE ISSUE\nMoreover, a draft of the statement to be issued after the summit makes no mention of the exodus of Rohingya Muslims from Myanmar\u2019s Rakhine state following a military crackdown that has been described by the United Nations as ethnic cleansing.\nOne paragraph of the communique, seen by Reuters on Monday, mentions the importance of humanitarian relief provided for victims of natural disasters in Vietnam and a recent urban battle with Islamist militants in the Philippines, as well as \u201caffected communities\u201d in northern Rakhine state.\nThe statement was drawn up by the Philippines.\nThe draft did not give any details of the situation in northern Rakhine or use the term Rohingya for the persecuted Muslim minority, which Myanmar leader Aung San Suu Kyi has asked foreign leaders to avoid.\nThe government in mostly Buddhist Myanmar regards the Rohingya as illegal migrants from Bangladesh and does not recognize the term.\nWell over 600,000 Rohingya have fled to Bangladesh to find shelter in refugee camps after military clearance operations were launched in response to attacks by Rohingya militants on security posts on Aug. 25.\nThe plight of the Rohingya has brought outrage from around the world and there have been calls for democracy champion Ms. Suu Kyi to be stripped of the Nobel Peace Prize she won in 1991 because she has not condemned the Myanmar military\u2019s actions.\nIn September, United Nations Secretary-General Antonio Guterres said the situation in Rakhine was best described as ethnic cleansing.\nSome members of ASEAN, particularly Muslim-majority Malaysia, have voiced concern. However, in keeping with ASEAN\u2019s principle of non-interference in the internal affairs of one another, the issue appears to have been put aside at the summit.\nIn September, Malaysia disavowed a statement issued by the Philippines on behalf of ASEAN\u2019s foreign ministers as misrepresenting \u201cthe reality\u201d because it did not identify the Rohingya as an affected community in Rakhine state. — with Reuters reports", "date_published": "2017-11-14T00:31:46+08:00", "date_modified": "2017-11-14T00:31:46+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "ASEAN", "duterte", "human rights", "migrants", "OFW", "remittance", "security", "southeast asia", "terrorism", "Editors' Picks", "大象传媒" ] }, { "id": "http://www.bworldonline.com/?p=64365", "url": "/editors-picks/2017/10/20/64365/western-union-expands-network/", "title": "Western Union expands network", "content_html": "By\u00a0Melissa Luz T. Lopez,
\nSenior Reporter
WESTERN UNION has broadened its retail expansion through branches of LBC Express, Inc., as the global money transfer firm rides on the robust growth in remittance inflows to the Philippines despite growing interest towards e-payments.
\nThe financial services firm said they have started the payout of money transfers via LBC as a sub-agent, as they remain bullish on the need for physical outlets at a time of increasing interest towards digital transactions.
\n\u201cThere\u2019s still a big preference in terms of the retail type of experience, but I\u2019m not saying that we disregard emerging trends,\u201d Western Union country director Jeffrey D. Navarro said in a press briefing yesterday, noting that the expanded service network comes alongside options for online-based transfers.
\nLBC president and chief operating officer Mike A. Camahort said they have so far seen \u201cvery promising\u201d pay-out volumes of Western Union and PERA Hub\u2019s transactions through their outlets on the first month of offering the service, although refusing to give specific figures.
\nThe logistics firm has over 1,200 locations nationwide, which can now be tapped by Western Union clients for cashing in remittances and payment transfers. Western Union\u2019s largest agent network PERA Hub \u2014 the retail brand of the Aboitiz-led PETNET, Inc. \u2014 forged the deal with LBC which took effect recently.
\nThese add to 5,900 Western Union agents all over the Philippines.
\nPETNET president and chief executive officer Lorenzo T. Ocampo said they are not threatened by increasing use of financial technology as market disruptors, noting that brick-and-mortar outlets remain a key point of contact for customers.
\n\u201cThe branch network where you can offer financial services that are compliant with the law and with a high level of customer service are still going to be very important.\u00a0 When you talk about fintech, they still need a branch service network going forward,\u201d Mr. Ocampo said during the briefing.
\nMoney sent home by overseas Filipino workers (OFWs) totalled $18.595 billion as of August, up by 5.4% from a year ago and surpassing the central bank\u2019s 4% growth forecast for the full year.
\nMr. Navarro said they remain upbeat that remittance inflows will remain growing, noting that Western Union remains open to tapping more \u201cstrategic\u201d partnerships through their agents. He added that the money transfer company is open to exploring ties with fintech firms but will depend on business strategies.
\n", "content_text": "By\u00a0Melissa Luz T. Lopez,\nSenior Reporter\nWESTERN UNION has broadened its retail expansion through branches of LBC Express, Inc., as the global money transfer firm rides on the robust growth in remittance inflows to the Philippines despite growing interest towards e-payments.\nThe financial services firm said they have started the payout of money transfers via LBC as a sub-agent, as they remain bullish on the need for physical outlets at a time of increasing interest towards digital transactions.\n\u201cThere\u2019s still a big preference in terms of the retail type of experience, but I\u2019m not saying that we disregard emerging trends,\u201d Western Union country director Jeffrey D. Navarro said in a press briefing yesterday, noting that the expanded service network comes alongside options for online-based transfers.\nLBC president and chief operating officer Mike A. Camahort said they have so far seen \u201cvery promising\u201d pay-out volumes of Western Union and PERA Hub\u2019s transactions through their outlets on the first month of offering the service, although refusing to give specific figures.\nThe logistics firm has over 1,200 locations nationwide, which can now be tapped by Western Union clients for cashing in remittances and payment transfers. Western Union\u2019s largest agent network PERA Hub \u2014 the retail brand of the Aboitiz-led PETNET, Inc. \u2014 forged the deal with LBC which took effect recently.\nThese add to 5,900 Western Union agents all over the Philippines.\nPETNET president and chief executive officer Lorenzo T. Ocampo said they are not threatened by increasing use of financial technology as market disruptors, noting that brick-and-mortar outlets remain a key point of contact for customers.\n\u201cThe branch network where you can offer financial services that are compliant with the law and with a high level of customer service are still going to be very important.\u00a0 When you talk about fintech, they still need a branch service network going forward,\u201d Mr. Ocampo said during the briefing.\nMoney sent home by overseas Filipino workers (OFWs) totalled $18.595 billion as of August, up by 5.4% from a year ago and surpassing the central bank\u2019s 4% growth forecast for the full year.\nMr. Navarro said they remain upbeat that remittance inflows will remain growing, noting that Western Union remains open to tapping more \u201cstrategic\u201d partnerships through their agents. He added that the money transfer company is open to exploring ties with fintech firms but will depend on business strategies.", "date_published": "2017-10-20T00:00:26+08:00", "date_modified": "2017-10-20T00:00:26+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "LBC", "remittance", "Western Union", "Banking & Finance", "Editors' Picks" ] }, { "id": "http://www.bworldonline.com/?p=50672", "url": "/editors-picks/2017/09/22/50672/current-account-end-surplus-recovery-exports-imports/", "title": "Current account to end in surplus on recovery of exports, imports", "content_html": "By Melissa Luz T. Lopez,
\nSenior Reporter
THE PHILIPPINES could see its current account return to a modest surplus on the back of expectations that external trade will recover during the second semester, an analyst from a global bank said.
\nIn a report, Standard Chartered Bank economist Chidu Narayanan said the country\u2019s current account will likely sustain a recovery during the rest of 2017 to eventually end at a surplus, which would defy the initial forecast given by the Bangko Sentral ng Pilipinas (BSP).
\nAs of end-June, the country\u2019s current account \u2014 which factors in the country\u2019s balance of trade (exports and imports), net income from abroad, and net current transfers \u2014 stood at a $234-million deficit during the first six months, although narrower than the $424-million gap posted during the same period in 2016.
\n\u201cThe current account (C/A) compression experienced by the Philippines has been a market focus and the subject of persistent client queries over the past few weeks. The country recorded its first quarterly C/A deficit in over 13 years in Q1, but we do not believe that this is worrisome, or that it is a \u2018new normal,\u2019\u201d Mr. Narayanan said in a commentary sent to reporters.
\n\u201cWe forecast a moderate 2017 C/A surplus of 0.2% of GDP (gross domestic product), and expect a return to monthly surpluses in the medium term.\u201d
\nThe Philippines became a net lender to the rest of the world during the three months ended June as it posted a $15-million surplus.
\nThe second quarter surplus was supported by $5.5 billion in revenues from the booming business process outsourcing sector, alongside some $6.86 billion in money sent home by overseas Filipino workers (OFW), according to central bank data. These helped offset a bigger trade in goods deficit, which inched up to $9.7 billion from $9.5 billion previously.
\nFor Mr. Narayanan, external trade will continue its uptick to eventually peak by November, which in turn will propel the current account tally to positive territory by yearend.
\n\u201cWe forecast a stronger C/A balance in November 2017, and a return to surplus as the November 2016 balance rolls out of the calculation. Our 2017 C/A forecast is more optimistic than the central bank\u2019s forecast of a 0.2%-of-GDP deficit,\u201d the bank economist said.
\n\u201cHigher-than-expected trade deficits, on higher oil imports or an increase in capital goods could skew risks to the downside to our forecast.\u201d
\nThe central bank expects the full-year tally to settle at roughly $600-million deficit or 0.2% of GDP \u2014 the first time it will record a shortfall in 15 years \u2014 amid heavy importations of raw materials and capital goods as the Philippine government takes on its ambitious infrastructure spending plan. If realized, this would also spell a turnaround from last year\u2019s $601-million surplus.
\nAnalysts have said that the Philippines\u2019 vanishing current account surplus has significantly weighed on market sentiment towards the peso, on top of global developments and geopolitical tensions that turn investors away from emerging-market currencies.
\nHowever, central bank officials have dismissed concerns over the trade gap, saying that it was natural for a developing economy to spend more in order to \u201caccelerate investment ambitions.\u201d
\nING Bank N.V. Manila previously said that they also expect the full-year current account to log a $450-million surplus at 0.2% of GDP.
\n", "content_text": "By Melissa Luz T. Lopez,\nSenior Reporter\nTHE PHILIPPINES could see its current account return to a modest surplus on the back of expectations that external trade will recover during the second semester, an analyst from a global bank said.\nIn a report, Standard Chartered Bank economist Chidu Narayanan said the country\u2019s current account will likely sustain a recovery during the rest of 2017 to eventually end at a surplus, which would defy the initial forecast given by the Bangko Sentral ng Pilipinas (BSP).\nAs of end-June, the country\u2019s current account \u2014 which factors in the country\u2019s balance of trade (exports and imports), net income from abroad, and net current transfers \u2014 stood at a $234-million deficit during the first six months, although narrower than the $424-million gap posted during the same period in 2016.\n\u201cThe current account (C/A) compression experienced by the Philippines has been a market focus and the subject of persistent client queries over the past few weeks. The country recorded its first quarterly C/A deficit in over 13 years in Q1, but we do not believe that this is worrisome, or that it is a \u2018new normal,\u2019\u201d Mr. Narayanan said in a commentary sent to reporters.\n\u201cWe forecast a moderate 2017 C/A surplus of 0.2% of GDP (gross domestic product), and expect a return to monthly surpluses in the medium term.\u201d\nThe Philippines became a net lender to the rest of the world during the three months ended June as it posted a $15-million surplus.\nThe second quarter surplus was supported by $5.5 billion in revenues from the booming business process outsourcing sector, alongside some $6.86 billion in money sent home by overseas Filipino workers (OFW), according to central bank data. These helped offset a bigger trade in goods deficit, which inched up to $9.7 billion from $9.5 billion previously.\nFor Mr. Narayanan, external trade will continue its uptick to eventually peak by November, which in turn will propel the current account tally to positive territory by yearend.\n\u201cWe forecast a stronger C/A balance in November 2017, and a return to surplus as the November 2016 balance rolls out of the calculation. Our 2017 C/A forecast is more optimistic than the central bank\u2019s forecast of a 0.2%-of-GDP deficit,\u201d the bank economist said.\n\u201cHigher-than-expected trade deficits, on higher oil imports or an increase in capital goods could skew risks to the downside to our forecast.\u201d\nThe central bank expects the full-year tally to settle at roughly $600-million deficit or 0.2% of GDP \u2014 the first time it will record a shortfall in 15 years \u2014 amid heavy importations of raw materials and capital goods as the Philippine government takes on its ambitious infrastructure spending plan. If realized, this would also spell a turnaround from last year\u2019s $601-million surplus.\nAnalysts have said that the Philippines\u2019 vanishing current account surplus has significantly weighed on market sentiment towards the peso, on top of global developments and geopolitical tensions that turn investors away from emerging-market currencies.\nHowever, central bank officials have dismissed concerns over the trade gap, saying that it was natural for a developing economy to spend more in order to \u201caccelerate investment ambitions.\u201d\nING Bank N.V. Manila previously said that they also expect the full-year current account to log a $450-million surplus at 0.2% of GDP.", "date_published": "2017-09-22T00:15:38+08:00", "date_modified": "2017-09-22T00:15:38+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "tags": [ "current account", "current account surplus", "remittance", "Banking & Finance", "Editors' Picks" ] } ] }