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The previous forecast was $ 14 billion. The BSP is currently reviewing its overall external account projections. BSP Deputy Governor Diwa C. Guinigundo said when the BSP revised the balance of payments (BOP) projection higher to $ 2 billion from $ 1.6 billion, the expected remittances were also changed. Of the $ 14.74 billion, about $ 700 million will pass through the non-bank channels. Guinigundo said non-banks’ share of OFW fund transfers is declining from $ 1.2 billion in 2006. Banks’ wider network, improved financial services to OFWs and their beneficiaries continue to encourage migrant workers to remit their hard-earned foreign exchange via the formal channels. Guinigundo said earlier that the banking sector’s share of total remitted funds from OFWs is advancing faster than anticipated. From $ 3 billion in 2005, the amount of transactions lost to banks is expected to come down lower than 0 million this year. The BSP include OFWs’ non-bank remittances in its accounting of the BOP under personal and transfer accounts. The approximate number is that 10-15 percent of these fund transfers go through the informal channels. For the first two months OFWs sent home $ 2.184 billion. The BSP has been encouraging OFWs to remit through banks, which is cheaper and safer than door-to-door or other informal channels. The BSP also intensified efforts to reduce the cost of remitting funds, which is a positive development for the banking system. The central bank recently issued a circular requiring banks and non-bank financial institutions to post the charges for their remittance services and products, including classification of costs. BSP said this is to "promote the efficient delivery of competitively-priced remittance services by banks and other remittance service providers." The disclosure requirement also provides OFWs and their beneficiary a more informed decision in bank selection. There are eight million OFWs remitting an average of $ 10 billion a year. To improve remittance flows, the BSP will continue to focus on five principles, namely: enhancing transparency and promoting competition in the remittance market to lower remittance charges; improving the country’s payments and settlement systems to facilitate faster, safer and more efficient transfer of funds to beneficiaries; improving access to financial services; encouraging OFWs and their families to increase savings and investments; and promoting advocacy programs to cultivate financial literacy among OFWs and their families. Right now, the BSP said several commercial banks already offer OFW-specialized investment products and services related to insurance, pension and real estate. These remittances have boosted the supply of foreign exchange helping stabilize the exchange rate, and have provided valuable support to output growth, particularly through strong personal consumption expenditures," BSP said. About 46 percent OFW dollars are remitted from the |
http://www.mb.com.ph/BSNS2007043092932.html
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