INQUIRER.net

OVERSEAS Filipinos based in the United States still send the bulk of remittances, Bangko Sentral ng Pilipinas governor Amando Tetangco said.

Tetangco explained that although many Filipinos are based in the Middle East, they usually send only money while US-based Filipinos send both money and goods.

The value of the dollar was also a factor, the governor added.

Tetangco also noted a significant decrease in the amount of remittances coursed through traditional official channels such as the postal system.

“Thirty percent of the remittances used to be course through official channels but it went down to only three percent to four percent this year,” he said.

The governor attributed the decrease to the aggressive marketing being done by banks. Many banks have partnered with foreign counterparts or have set up international franchises to be more accessible to overseas Filipinos.

“Most of our OFWs [overseas Filipino workers] nowadays prefer sending their loved ones money through bank accounts or wired transactions because it offers more security for every transaction they make,” he said.

Tetangco also said that remittances from overseas Filipinos remain the top income generator of the country after remittances increased by 3.7 percent in the second quarter of the year when compared to the same period last year.

He gave this assessment during the recent launching of the Metro Cebu Coopreneur's Surety Fund at the Marco Polo Hotel in Cebu City.

“We expect this to still increase by four percent in the fourth quarter of this year. With the Christmas season approaching, our overseas workers usually send more to their families here,” Tetangco said.

According to its governor, the BSP originally projected flat growth in remittances this year but was surprised at how things have turned out.

“This only means that our workers there are not as much affected by the crisis although it would not be a general claim,” Tetangco said. CorrespondentAileen Garcia-Yap