Cash remittances from overseas Filipinos (OFs) reached a record high of $35.63 billion in 2025, equivalent to about P2.07 trillion at current exchange rates, according to the Bangko Sentral ng Pilipinas (BSP).

Latest central bank data showed that remittances—long considered a cornerstone of the Philippine economy—were 3.3 percent higher than the $34.49 billion recorded in 2024. The BSP said the annual figure represents 7.3 percent of the country’s gross domestic product (GDP) and 6.4 percent of gross national income (GNI).

Month on month, OFs remitted $3.52 billion in December 2025, up by $610 million from November’s six-month low, with the Christmas period typically boosting inflows. BSP data showed holiday-related remittances increased from November to December by about $572 million in 2024 and $561 million in 2023, as OFs sent more funds home for year-end expenses and gift-giving.

Remittances also fuel consumption, which accounts for about 76 percent of Philippine GDP. A stronger dollar provided more purchasing power for Filipinos during the holiday season, when spending typically rises.

The United States remained the top source of cash remittances in 2025, followed by Singapore and Saudi Arabia. The US also accounted for the largest share of both land- and sea-based remittances.

Meanwhile, personal remittances—which include both cash transfers and compensation of OFs—rose to $3.89 billion in December 2025. This brought the full-year total to an all-time high of $39.62 billion, up 3.3 percent from $38.34 billion in 2024.

To illustrate the microeconomic impact, DAILY TRIBUNE spoke to a Filipina nurse in San Francisco, who declined to be named for privacy reasons.

“My husband and I have been living here for about two decades,” she said. “My parents said this past Christmas was more abundant than the last,” she added in Filipino, noting that she regularly sends pamasko to her parents and relatives.

“They’ve always told me, we can buy so much more whenever you send money home, so you should do it more often,” she quipped.

The peso sank to a then record low of P59.22 against the dollar in December, driven by strong US dollar conditions amid Federal Reserve tightening and higher US yields. A narrowing interest rate gap with the BSP, persistent trade deficits, seasonal corporate dollar demand, and global risk aversion also weakened the peso.

The currency later fluctuated, hitting new record lows in January following geopolitical developments in Venezuela. However, the peso has since rebounded, supported by renewed demand for Philippine assets—including the Bureau of the Treasury’s recent global bond sale—with the currency trading at P57.99 per dollar at press time.

“It’s not that big of a deal for me. Of course I love my family—I won’t be stingy when I send money back home,” she said, noting that she and her husband also send money during birthdays and other special occasions.

“The dollar has always been strong, especially now, so I get why my family is so excited during Christmas,” she added.