Thursday, December 5, 2013

‘Yolanda’ seen jacking up remittances to PH

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Cash transfers from overseas to the Philippines were expected to have increased the past two weeks due to the combined effects of the holiday season and the rebuilding efforts in areas hit by Supertyphoon “Yolanda,” according to US-based remittance giant MoneyGram International.


While the number of people sending money remains the same, the value of remittances has increased significantly, according to Alexander Lim, MoneyGram Philippines country manager.


“It is, however, hard to distinguish how much of the increase was due to Yolanda and how much was due to the Christmas season,” he said.


Lim said remittances normally grow substantially in December as overseas Filipino workers (OFW) send more money home for gifts and other holiday-related expenses.


The Bangko Sentral ng Pilipinas (BSP) last month noted that based on reports from banks, which are the main channel for the entry of remittances, cash transfers grew at a faster pace in November compared to previous months of the year. Official remittance figures for December are not yet available.


Latest data from the BSP showed cash remittances rose by 5.3 percent to $1.9 billion in September. This brought the year-to-date total to $16.5 billion, up 5.8 percent year-on-year. This is within the BSP’s projection that shows remittances growing by 5 percent to a record high of $22.5 billion by the end of this year.


Money sent home by OFWs help fuel consumer spending, which accounts for about a tenth of the country’s annual gross domestic product.


For its part, MoneyGram said it would continue expanding its network in the Philippines to make it easier for families to receive remittances from their relatives abroad.



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Short URL: http://business.inquirer.net/?p=155313


Tags: Business , ofws , Remittances , Typhoon Yolanda



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