Personal remittances from overseas Filipinos increased by 3.1 percent to $3.33 billion in October from $3.23 billion a year ago.

As a result, total personal remittances reached $30.57 billion or 2.9 percent higher in the first ten months year-on-year, the Bangko Sentral ng Pilipinas reported Friday.

Migrant workers with at least one-year job contract sent 3 percent more in personal remittances in October compared to the same month last year.

Meanwhile, those with less than one year contract registered a 2.9 percent increase.

$27.5-B inflows thus far

Cash remittances sent through banks contributed $3 billion in October, up by 3 percent from the year-ago level.

This raised cash remittances by 2.8 percent to $27.49 billion from January to October.

Land-based workers increased cash remittances by 3.1 percent during that period, while 1.8 percent by sea-based workers.

The top source of cash remittances in the first ten months was the United States with 41.5 percent share, followed by Singapore (7 percent), and Saudi Arabia (6 percent).

The central bank expects full-year remittances to hit $37 billion from $36.1 billion last year.

Santa Claus effect

Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said remittances from overseas Filipino workers or OFWs will still likely climb a week before Christmas.

"This will finance the surge in holiday spending and could seasonally support the peso exchange rate," he said.

"Some seasonal increase in OFW remittances and conversion to peso could have also been seen already since the long Undas break last week of October 2023 to the first week of November 2023 to finance long weekend spending such as travel, gatherings, reunions, and other related expenditures," Ricafort added.

The economist said high local inflation partly increased OFW remittances to support expenses of their families at home.

Inflation last month further slowed to 4.1 percent but still faster than the government target of 2 to 4 percent.

Ricafort said the growing remittances have helped strengthen the peso to P55.70 per dollar from P51 per dollar.

"This makes those that earn US dollars better off, such as OFWs and their families, exporters, BPO workers, foreign tourists and investors, among others, in terms of more peso proceeds from their US dollars," he said.