Cash remittances to the country contracted in September, largely on account of lower transfers from Filipino migrant workers in the Middle East, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.
Data from the BSP showed the volume of cash sent by overseas Filipino workers (OFWs) shrank by 8.3 percent year-on-year in September. This is the biggest monthly decline in the volume of cash remittances since April 2003, when it contracted by 10.9 percent.
Total cash remittances, or money that went through banks from Filipino migrant workers abroad to the Philippines, was still above the $2-billion mark, as it reached $2.19 billion.
The BSP said countries that registered the biggest declines in cash remittances in September were Saudi Arabia, followed by Kuwait, Qatar and Australia.
“For Saudi Arabia, the decline in remittances could partly be the result of the continued repatriation of OFWs under the Saudi Arabian Amnesty Program which started in March,” the BSP said.
The Central Bank also said data from the Department of Foreign Affairs (DFA) showed a total of 8,467 undocumented Filipinos has already availed themselves of the initial offer of repatriation.
By worker classification, cash remittances from land-based workers dropped by 11.7 percent, thereby offsetting the 6-percent increase in transfers from sea-based workers.
The BSP also said there are reports that a number of global correspondent banks have closed their service facilities on money- service business, reflective of the increasing global trend to reduce correspondent banking relationships and focus more on home market.
“This may have partly affected remittances flows during the month,” the BSP said in a statement.
From January to September, remittance growth slowed to 3.8 percent. Total remittances amounted to $20.8 billion. Cash remittances from land-based reached $16.4 billion, while sea-based workers contributed $4.4 billion to total inflow during the nine-month period.
The government projected a 4-percent growth for remittances this year. Total remittance inflow this year is seen at $27 billion.
Singapore-based DBS Bank economist Gundy Cahyadi said for now, remittances appear to be on track to hit the government’s target range, and remain supportive of consumption growth.