Business Bayani PH

In November 2023, personal remittances from overseas Filipinos (OFs) achieved a significant milestone, reaching $3 billion. This marked a noteworthy 2.9% increase compared to the $2.9 billion recorded in November 2022, the Bangko Sentral announced on January 15. 

The boost in remittances during the month was attributed to heightened contributions from two key groups: land-based workers with contracts lasting one year or more, and sea- and land-based workers with contracts of less than one year.

Building on this positive momentum, cumulative personal remittances for the first eleven months of 2023 exhibited a parallel 2.9% surge, totaling $33.6 billion. This reflected an uptick from the $32.6 billion recorded during the same period in 2022.

Breaking down the data, cash remittances from OFs funneled through banks experienced a 2.8% increase, amounting to $2.7 billion in November 2023, compared to $2.6 billion in the corresponding month of 2022. The surge in cash remittances during November 2023 was primarily fueled by augmented receipts from both land- and sea-based workers.

On a year-to-date basis, cash remittances soared to $30.2 billion for the first eleven months of 2023, marking a robust 2.8% increase over the previous year’s level of $29.4 billion.

Driving this sustained growth were contributions from the United States (U.S.), Saudi Arabia, and the United Arab Emirates (U.A.E). These countries played a pivotal role in the increased remittances observed in the first eleven months of 2023. The United States emerged as the top contributor to overall remittances during this period, followed by Singapore and Saudi Arabia.

It is essential to note that the remittance data has limitations. Many centers send transactions through U.S.-based correspondent banks. Money courier transactions lack specific country details, often tied to main offices in the U.S. As a result, the U.S. seems the main source of OF remittances, ranked by cash remittance share from highest to lowest.

As we start the new year, the strong commitment of OFs supporting their families is clear. The rise in personal remittances, especially from key regions, emphasizes the crucial role OFs play in the Philippines’ economic well-being. This positive trend is a beacon of hope, showcasing the lasting ties that connect OFs with their homeland.◼