OFW remittances continue to drop in May due to job loss

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In recent data released by the Banko Sentral ng Pilipinas (BSP), overseas Filipino workers’ (OFWs) remittances have sustained its fall in May. 

Personal transfers, whether in cash or kind and capital transfers between households — settled at $2.34 billion in the fifth month of 2020, contracting by 19.2 percent from $2.89 billion in May 2019. 

The latest figure, however, was higher by 2.85 percent from $2.27 billion in April. 

“This is the third consecutive month that personal remittances posted year-on-year contraction amid the adverse effects of the Covid-19 pandemic on global economic activity, travel, and employment, resulting in the repatriation or deferment of employment of many OFWs,” the BSP said in a statement. 

Personal remittances from land-based workers with work contracts of one year or more decreased to $1.77 billion in May, 21.1 percent lower than $2.244 billion recorded the previous year.

“Similarly, remittances from sea-based workers and land-based workers with work contracts of less than one year fell by 12.4 percent to $519 million in May 2020 from $592 million a year ago,” it further added.

The continuous decline in cash remittances was due to the negative effects of the limited operating hours of some banks and institutions that provide money transfer services using the lockdown period and the repatriation of many OFWs in March 2020. 

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