The Philippines: Remittances buck pessimistic expectations to peak in Jul 20

  • Money sent home by Filipinos overseas hit their highest monthly level in 2020 in Jul 20, bolstering optimism the crucial inflows are more resilient to the pandemic than thought.
  • Cash remittances coursed through banks jumped 7.8% y/y to USD2.78bn in Jul 20, faster than the 7.7% clip posted in Jun 20, the Bangko Sentral ng Pilipinas (BSP) reported on 15 Sep 20.
  • The back-to-back increase was enough to trim the YTD drop in remittances below the central bank’s forecast. Cash inflows amounted to, down 2.4% y/y and running below the 5% contraction seen for the entire 2020.
  • Indeed, analysts who expected remittances will take a hit from the health crisis were surprised by the latest data. Alvin Ang and Jeremaiah Opiniano, researchers who have studied migrant workers extensively and expect a 20% drop in 2020, said displaced overseas Filipino workers appeared to be dipping into their savings to support their families back home.

External Link :