Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said he is confident that the projected ten percent growth for migrant workers’ remittances will be surpassed this year since banks’ penetration of the fund transfer business is now higher.
"(The growth) is more than ten percent now (as of April) and we’re keeping the growth target," said Tetangco. He added, "we’ve been coordinating with the banks, so they can offer financial products that the OFWs (overseas Filipino workers) and their families can buy or participate in."
Tetangco said the BSP wants to see more OFW families putting a part of the remittances in banks or financial products. "(And) for those that don’t have the inclination or the time to manage their investment, the banks will basically manage that for you, that’s also good because there’ll be more resources for banks to invest in productive activities (and a) source of funds for lending."
As of April, OFW cash reached .7 billion, 10.8 percent higher compared to .35 billion in 2005.
Remittance transfers such as internet and online-banking, better rates, expansion of remittance branches and more tie-ups with foreign money transfer agents are encouraging OFWs to transact more with banks. (LCC)
There are an estimated seven million OFWs. The US, Saudi Arabia, Hong Kong and Japan are the top four major sources of remittance flows.
To maintain competitiveness of OFWs, the government pursued programs that will strengthen workers’ technical training and education to enhance job-skills matching.
The continued growth in remittance helps the country’s balance of payments and ensures surpluses, which means more dollar stock.
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