OFW remittances down in August for first time in 10 years – BSP

MANILA, Philippines — Money sent home by overseas Filipino workers (OFW) declined for the first time in nearly a decade in August, data released by the central bank showed.

On Thursday, the Bangko Sentral ng Pilipinas (BSP) said migrant remittances totaled $2.04 billion in August, 0.6 percent less than the $2.068 billion in August 2014.

In the eight months to August, remittances were up 4.1 percent to $16.21 billion.

The decline in remittances came amid the peso’s weakness in August. A weak currency means the amount of money families receive in peso terms stays the same even if OFWs send less.

Main sources of remittances were the US, Saudi Arabia, United Arab Emirates, the United Kingdom, Singapore, Japan, Hong Kong, and Canada.

Remittances from the country’s OFWs are the largest source of dollar income for the Philippine economy. These cash transfers also serve as fuel for domestic consumption, which accounts for about two-thirds of the gross domestic product (GDP).

In 2014, OFW remittances accounted for nearly a tenth of GDP.  SFM