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Solon calls for lower remittance fee amid rising PH inflation rate

A lawmaker underscored the need for banks to lower fees on remittances sent by overseas Filipino workers (OFW) amid the rising inflation rate in the country.

ACTS-OFW Representative Aniceto Bertiz III called for banks to lower remittance charges from the average 10.57 percent transfer charge to 5 percent.

Bertiz said the move can help OFWs save extra money since the rising prices of goods in the country only negates the lower value of peso.

“Reducing the cost of bank remittance services to 5% would mean some $1.5 billion or P80.1 billion in cost-savings and extra money in the pockets of our migrant workers and their families every year,” Bertiz said.

“The inflationary impact of rising oil prices has eroded whatever higher value migrant workers are getting from their earnings in dollars,” he said.

Peso-dirham rate headed to Php15

As of press time, peso-dirham exchange rate is around Php14.50, which is expected to head to Php15.

Earlier, remittance companies in the UAE told The Filipino Times that the peso-dirham exchange rate, which has continuously been moving up since last year, is headed to Ph15, citing different factors foremost of which is the US move to hike interests resulting to a struggling peso.

“It is not going to happen overnight…hindi ganuon kabilis (not that fast); maybe early next year if not by the end of this year,” said Edwin Punzalan, Banco de Oro assistant vice president for remittance in the UAE.

“Pwedeng mag-Ph15. It’s highly likely… hindi naman biglaan (not sudden),” said Mo Purple Juachon, Al Rostamani Exchange senior relationship officer.

RELATED ARTICLE: Peso-dirham rate headed to Php15

However, the Philippines’ inflation rate reached 5.2 percent in June 2018, negating the benefits that OFWs can get from the high exchange rate.

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