OFW remittances have increased by 5.1% in November to reach $ 2.502 billion.
According to Bangko Sentral ng Pilipinas (BSP) the overseas Filipino workers (OFW) sent $2.502 billion in cash remittances in November 2021, growing by 5.1 percent from the volume they sent in the same month in 2020.
The land-based workers’ cash remittances grew 6.3 percent to hit $1.97 billion during the month, while sea-based workers’ remittances increased by 1.2 percent to hit $527 million.
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ING Bank economist Nicholas Mapa said the strong remittance flows will boost spending and help with the recovery of the economy.
Mapa said a steady dose of overseas Filipino remittances and business-process outsourcing [BPO] receipts have helped support the local unit throughout most of 2021, a year that saw the Peso tumble like most in the region.
“We can expect these two structural types of flows to continue to flow in 2022, helping steady the Philippine peso yet again,” Mapa said.
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“However, we expect external events to overtake real sector flows as the Fed prepares its eventual rate lift-off this year. Remittance and BPO receipts will likely be relied on heavily to steady the currency,” he added.
The November cash remittance volume brought the total cash remittances sent to the country to $28.43 billion in January to November 2021. This was up 5.2 percent from the $27.013 billion in the same 11-month period in 2020.
