MONEY sent home by overseas Filipinos (OFs) dropped in January from December’s all-time high, Bangko Sentral ng Pilipinas (BSP) data showed on Monday.
Personal remittances, which include cash sent through banks and informal channels, rose by 3.5 percent to $3.36 billion from $3.24 billion a year earlier but dropped 13.7 percent from December’s all-time high of $3.9 billion.
Cash remittances alone totaled $3.02 billion, also 3.5 percent higher than the year ago $2.92 billion but 14.3-percent lower compared to December’s $3.52 billion.
Land-based workers accounted for the bulk of cash remittances at $2.41 billion, up from $2.33 billion a year earlier, while sea-based worker remittances also rose to approximately $610 million from $590 million.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the drop from December was mainly due to seasonal factors after the holiday surge, but remittances are still higher than a year ago, showing that incomes of overseas Filipino workers (OFWs) remain strong.
“A weaker peso and steady overseas employment continue to support flows,” Ravelas said.
“Looking ahead, the Middle East conflict adds uncertainty and could cause month‑to‑month volatility, but unless it leads to widespread job losses or payment disruptions, full‑year remittance growth should stay positive,” he added.
“For households, the priority is to use remittances wisely — rebuild savings, reduce debt, and be cautious with spending given ongoing global risks,” Ravelas said.
The United States continued to account for the biggest share with 40.2 percent, followed by Singapore at 7.6 percent; Saudi Arabia, 6.7 percent; Japan, 5.8 percent; and the United Kingdom, 4.6 percent.
Rounding out the top 10 were the United Arab Emirates (3.7 percent), Canada (3.0 percent), Taiwan (2.9 percent), Qatar (2.8 percent) and Hong Kong (2.5 percent).
The BSP said there were limitations on data by source, as remittance centers abroad normally send the money through correspondent banks that are mostly located in the US.
Also, remittances sent through couriers are recorded under the country where their main offices are located, which again in many cases is the US.
“Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source,” the BSP said.