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By Maricel E. Burgonio, Reporter
MONEY sent home by overseas Filipino workers (OFWs)
rose significantly in the first five months of the year due to
steady growth of deployed workers, the Bangko Sentral ng Pilipinas (BSP)
said Tuesday.
In a statement, BSP Governor Amando Tetangco Jr.
said total remittances grew 14.7 percent year on-year to $6.8
billion in the five-month period. In May alone, remittances rose
15.6 percent year on year to $1.4 billion.
The bulk of remittances continued to emanate
from the US, Saudi Arabia, Canada, the United Kingdom, Italy, the
United Arab Emirates, Singapore, Japan and Hong Kong.
“Behind the continued expansion in remittances
for the period was the steady growth in the number of deployed
Filipino workers and enhanced financial services offered by the
banks to overseas Filipinos,” Tetangco said.
Preliminary data from the Philippine Overseas
Employment Administration showed that the number of deployed
Filipino workers worldwide jumped by 39.5 percent to 533,945 for the
first five months of the year.
Tetangco said this reflected the distinct
preference for the skills, quality and competence of Filipino
workers.
More jobs were available to qualified Filipinos
particularly from current expansion of a giant oil processing
complex in the Middle East to service the rising global demand for
crude.
Meanwhile, banks and non-bank remittance centers
have been aggressive in expanding financial services to OFWs and
their beneficiaries.
Tetangco said the establishment of more
remittance centers, correspondent banks, and branches or
representative offices abroad, together with the existing tie-ups
with foreign financial counterparts, is expected to further
facilitate the flow of remittances.
The BSP forecast remittances to hit $16.4
billion this year from $14.4 billion last year.
The growth in remittances mirrors the increase
in domestic consumption, which is the main driver of the country’s
economic expansion. Despite the high cost of food and fuel, OFW
remittances are expected to prevent a contraction in domestic
consumption.
Speaking before members of the Bankers Institute
of the Philippines, Tetangco expressed confidence that the momentum
for economic reforms will be preserved despite high inflation and a
global economic slowdown.
“We remain confident that we can ride out this
turbulence and sustain economic gains achieved in recent years
because we have built up domestic buffers that should continue to
help us withstand headwinds which are mainly external in origin,”
he said.
The BSP projects the country’s foreign
exchange reserves to reach $36.5 billion to $37 billion this year,
while economic managers see economic expansion of between 5.7
percent and 6.6 percent.
Tetangco also said the current foreign exchange
levels reflect a healthy correction in the market. “The market
players should take advantage of this,” he said.
The peso closed 45.460 to the dollar on Tuesday,
falling from 45.245 the day before.
The BSP chief said the peso should be supported
by strong remittance growth, especially in the last quarter of the
year.
The Development and Budget Coordinating
Committee forecasts the local currency to average between 42 and 45
to the greenback this year, while the BSP sees the country’s
balance of payments to register a surplus of $2.5 billion.
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