The recovery of fuel prices in the world market may increase the deployment of overseas Filipino workers in oil-rich countries, Bangko Sentral ng Pilipinas (BSP) has pointed out.
The rebound in oil prices as a result of the plan of the Organization of the Petroleum Exporting Countries (OPEC) to lower global production would help stabilize the deployment of skilled Filipino workers, Philippine Star quoted BSP Deputy Governor Diwa Guinigundo as saying.
“Our rate of deployment continues to grow, although a little bit more modest. It continued to grow because of the profile of the skills that we send abroad,” he reportedly said.
The commitment to reduce global oil production resulted in a dramatic jump in oil prices to above $50 per barrel, the report said.
The group reportedly agreed to cut output by 1.2 million barrels per day starting January while non-OPEC producers decided to reduce exports by 600,000 barrels per day.
Guinigundo said the economic recovery as a result of higher prices would allow oil-rich countries to hire more Filipino workers. “That is a lot of material value to the stability of our remittances,” he was quoted as saying.
Guinigundo reportedly said the sharp drop in oil prices did not result in lower demand for skilled Filipino workers in oil-rich countries.
“People thought the demand for overseas labor will come down but that did not happen,” he added.
The BSP official explained the Philippines is now a major source of professionals and skilled workers abroad. Aside from oil-rich countries in the Middle East, Guinigundo said, there is a diverse market for overseas Filipino workers.
There are about 10 million Filipinos working and living abroad who are sending cash to their loved ones in the Philippines. Cash remittances account for about 10 percent of the country’s domestic output.
Remittances went up 4.8 percent to $20.2 billion in the first nine months from $19.1 billion in the same period last year. This was faster than the four percent growth set by the BSP for this year.
The stronger dollar means higher peso conversion for recipients of remittances from overseas Filipinos, reported Philippine Star.
