Overseas Filipino Workers remittances reached P2.8 billion in June. But its growth slowed compared to last year. An economist thinks that some OFWs may have reduced their remittances to the Philippines because of the high exchange rate between the peso and the dollar. It is difficult for some families to fit in the sending of their relatives because of the high cost of goods.
Personal remittances from overseas Filipino workers (OFW) grew by 2.8 percent in the first semester to reach $17.1 billion from $16.6 billion in the same six months last year, thanks partly to recovering economies of some countries that host these expatriates.
According to the Bangko Sentral ng Pilipinas (BSP), inflows in June alone grew by 4.4 percent to $3.1 billion from $2.9 billion in the same month of 2021.
While the strong US dollar has brought in more pesos for recipients of remittances, whatever gains OFWs and their dependents may have been negated by higher prices.
The peso has been trading at more than 55:$1 since June, but inflation has also risen every month since February and pegged at 6.1 percent in June.
“Thus, there may still be a need to send more OFW remittances due to higher prices and inflation,” Ricafort said.
