OFW remittances reach .7 B in Nov.

OFW remittances reach .7 B in Nov.
Sat Jan 14,2006
Manila Bulettin
http://www.mb.com.ph/BSNS2006011453768.html#

Filipino migrant workers remitted .7 billion in the first eleven months of 2005, up 26.6 percent from the previous year’s .7 billion, the Bangko Sentral ng Pilipinas said yesterday.

Last November overseas Filipino workers sent home 5 million, an increase of 21.8 percent yearonyear. "Total amount of remittances coursed through the banks is projected to reach .7 billion for 2005," BSP Governor Amando M. Tetangco Jr. said. Including non-bank remittances, total OFW cash expected is .3 billion.

For 2006 the target for remittances is .8 billion and including non-bank cash, .5 billion.

The central bank said there is continuing demand for Filipino workers. Based on preliminary data from the Philippine Overseas Employment Administration showed that the total number of deployed workers from January to November 2005 rose by 3.9 percent, reaching 900, 639 from 867, 125 during the same period in 2004.

BSP officials added that the continued preference for Filipino sea-based and higher-paid land-based workers helped support the level of remittances during the eleven-month period. Classified by type, land-based workers, comprising almost threefourths of deployed workers numbered 674, 365 while sea-based workers reached 226, 274. By country of destination, majority of Filipino workers are deployed in Saudi Arabia, Hong Kong, Japan, United Arab Emirates and Taiwan.

According to Tetangco, "efforts by financial institutions to direct remittances through the banking channels also contributed to the higher level of remittances."

In the meantime, commercial banks continued their vigorous campaign to provide banking services to the growing number of Filipino workers abroad through enhanced modes of money transfers, as well as wider network/presence through increased number of remittance centers and tie-ups with foreign financial counterparts resulting in a better capture of remittances.

The central bank hopes to record more of these fund transfers when they go through the formal channels or sent via the banking system. About 75 percent of cash transfers are made through the banks, while 25 percent are through informal networks.

Last year, OFWs remitted .54 billion, the highest recorded fund transfers since the 1970s when the first big batch of migrant workers were deployed as a labor problem solution. The 2004 remittances were higher by 11.8 percent from .63 billion in 2003.