Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

Monthly remittance data shows downward spikes

Posted on August 27, 2008

by JEREMAIAH M. OPINIANO
www.ofwjournalism.net

MANILA–MONTH-ON-MONTH remittance data reflecting downward spikes may reveal the impact of world oil and commodities prices adjustment to economies like the Philippines that are dependent on cash flow from abroad, economist Alvin Ang said.

“While it is too early to see the effect, we should be on guard of the monthly growth rates of remittance inflows and understand the ‘Philippine cycle’ of these flows,” the University of Santo Tomas economics professor said.

The OFW Journalism Consortium spoke to Ang before the Bangko Sentral ng Pilipinas revealed on August 15 a record high remittance in June of $1.5 billion.

Ang admits that total cash remittance volumes increased, both on a year-on-year level and on a cumulative cash remittance growth rate.

However, Ang said, these growth rates should take into account the start of the US credit crunch, the surge in world oil and food prices, and domestic inflation.

Monitoring cash remittance growth rates in this context is important in determining the level of migrant workers’ propensity to remit back home, Ang said.

He explained month-on-month cumulative remittance data could also help identify the intensity of the impact of world price changes on overseas Filipino workers’ (OFW) money flow.

For example, the BSP cash remittance data between January 2004 to May 2008 that January, February, April, July, September, and November are low-growth months for cash remittance inflows (see Table 1).

Cash remittances’ growth rates usually rebound during the months of March (for graduation), May, August, October (due to tuition and fees payments by students of OFWs), and December (for Christmas).

But when the food crisis peaked in March, remittances growth rate was pegged at 13.44 percent, the lowest March figure over a five-year period.

And when Philippine inflation reached 9.5 percent last May, that month’s remittance growth rate was 1.39 percent.

Ang added Philippine monetary officials should worry if there will be more negative month-on-month cash remittances growth rates this year despite continued increases of total remittance volumes (see Table 2).

The Philippines had seven months of negative month-on-month cash remittance growth rates for both 2006 and 2007, compared to six months of negative growth rates in the years 2005 and 2004.

Three of the first five months of the year saw negative month-on-month growth rates for remittances.

Last year, groups of OFWs circulated electronic mails citing that a strong peso has prompted many of their colleagues to send additional money to maintain the purchasing power of their families in the Philippines.

Money from an estimated 8.7 million Filipinos working or living temporarily or permanently in 193 countries have been credited as keeping consumer spending high or, at best, constant.

However, Ang said that a high-inflation environment and weak dollar cast doubts on the “physical sustainability” of OFWs to send money to the Philippines.

OFW Journalism Consortium

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme