Personal remittances from overseas Filipino workers (OFWs) declined by 13 percent to $3.24 billion in January from a peak of $3.73 billion in December 2024 as the peso weakened against the US dollar.

The Bangko Sentral ng Pilipinas (BSP) on Monday reported the January level was higher by 2.9 percent from the $3.15 billion recorded in the same month of 2023.

From the total remittances, the BSP said cash sent through banks reached $2.92 billion, higher also by 2.9 percent year-on-year.

Land-based workers sent home $2.33 billion, increasing their remittances by 3.4 percent. Meanwhile, sea-based workers grew their remittances by 0.9 percent to $590 million.

The bulk of cash remittances came from Saudi Arabia, the United States, Singapore, and the United Arab Emirates.

For the total remittances, the United States was the top source, with a 41 percent share. This was followed by Singapore which accounted for 7.5 percent and Saudi Arabia which had a 6.6 percent share.

Weak peso a disincentive

Rizal Commercial Banking Corporation chief economist Michael Ricafort said the lower remittances reflected the peso depreciation against the US dollar, reaching levels around P57 per one dollar compared to P51 per dollar in 2022.

“Overseas Filipinos’ remittances have more peso equivalent for every US dollar sent which became a source of consolation for overseas workers and their families, especially in coping with still relatively higher prices,” he said.

The growth in total remittances was registered after the local overall inflation remained sticky at 2.9 percent in December 2024 and January 2025 based on data from the Philippine Statistics Authority.

Vegetable prices largely contributed to overall inflation as they shot up by 21.1 percent from 14.2 percent, following several typhoons in the last quarter of 2024.

Aside from inflation rates, the benchmark for interest rates in January was also high at 5.75 percent. Some economists project the BSP to lower its policy rate to 5 percent this year.

“The remittances also helped their families cope up with still relatively higher interest rate payments since 2022 for any amortization for housing loans, auto loans, personal loans, business loans, and other consumer loans,” Ricafort said.

Jonathan Ravelas, senior adviser at Reyes Tacandong and Co., said the lower remittances were expected, following the consumption activities of households to celebrate last Christmas.

“It was more about seasonal effects as the bulk of remittances are usually seen in the fourth quarter of the year,” he said. “The decline is not alarming, and growth will likely continue, reaching 3.1 percent for the full year,” Ravelas added.