OFW Remittances Reach $11.4B From Jan-July

The Bangko Sentral ng Pilipinas (BSP) reported over the weekend that remittances sent to the Philippines by overseas Filipinos totalled $11.4 billion in the first seven months this year.

The BSP said that money sent home by OFWs with last July’s inflows have also reached $1.7 billion.

Data released by BSP show that inflows last July alone was up by 6.1 percent against a year ago’s $ 1.62 billion while the end-July level rose by 6.3 percent from the $10.7 billion same period last year.

Bulk of these inflows came from the U.S., Canada, Saudi Arabia, U.K., Japan, Singapore, United Arab Emirates, Italy, and Germany, all of which account for 82.8 percent of remittances that passed through the formal channel.

BSP governor Amando Tetangco Jr. attributed the robust remittance inflows to the continued demand for overseas Filipino workers (OFWs).

Citing Philippine Overseas Employment Administration (POEA) records, the Central Bank chief said processed job orders for August expanded by 19.5 percent to 26,504 bringing the year-to-date figure to 162,574.

“The processed job orders are expected to match the requirements for production, service, professional, technical and other related workers in Saudi Arabia, UAE, Taiwan, Qatar, Kuwait, and Hong Kong, among others,” he said.

He also cited that the number of land-based workers with processed contracts who are waiting to be deployed grew by 24.2 percent to 313,709 from 252,666 in July 2010. While the number of sea-based workers grew by 5.5 percent to 280,348 from 265,656 same period last year.

Relatively, the BSP chief is confident that growth of remittances for the rest of the year will not be greatly affected by Standard & Poor’s downgrade of US’ credit rating, the prolonged sovereign debt crisis in the Euro area, and the social unrest in the Middle East and North Africa (MENA).

“The favorable remittance outlook is expected to be supported by the ongoing geographical diversification of deployment of Filipino workers and efforts by the government to redeploy displaced workers in crisis-affected countries,” he said.

Source: Philippine Information Agency

7 Money Remittance, Money Transfer Tips for OFWs

One of the primary reasons of going abroad is to earn more and be able to send money to family members for various purposes. Since this money sending activity is a routine task overseas Filipino workers do, it pays to find a safe and cost effective way to remit money. Here are a few remittance tips to help OFWs make the most of their hard-earned money when sending them to families back home.

1. Choose a reputable cable agency
Whether it’s a bank (BPI, PNB, BDO or Metrobank) or a specialty remittance outlet (XOOM.com, Western Union or LBC Remit), ensure that you choose a reputable conduit for your money remittance transactions. They may cost a bit more than others, but they also offer convenience to recipients in the Philippines. More importantly you are more confident that your money reaches its destination since you transacted with a stable company.

2. Learn about currency exchange before making a remittance
Some Filipinos can hold on to their precious foreign currencies when dollar value depreciates against the Philippine peso and wait until their value against the Philippine peso increases. When the foreign currency appreciates, they immediately unload their cash that yields higher returns. Such skill requires guidance from newspaper’s business section or read the currency trends on television (Bloomberg, Wall Street Journal). Do this only if you have the luxury to buy time and there is no need to rush.

3. Try electronic transfer
Instead of taking the traditional route, learn to take advantage of electronic money transfer. Not only you will enjoy the convenience it offers — you can do it at home or anywhere you can access your Internet connection — it is cheaper and much faster than traditional money transfer channels.

4. Buy time with better exchange rates
Some agencies have better currency exchange rates. This is because the money you remit through these channels do not immediately reach your intended recipients. They need to coordinate with partner agencies who will then finish the transaction. You may choose this option if you wish to send higher amount through better rates and do not mind if it takes a few days to reach destination.

5. Never send money or check through regular postal service
Not only it takes much longer time to reach your loved ones, such method is prone to pilferage and your cash or check could be stolen or lost during shipment.

6. Remit through banks that offer ATM service
Many banks offer the convenience of ATMs to recipients back home. You can simply apply for an account in a bank with ATM presence in your family’s area. However, take notice of how much this bank charges on each withdrawal transaction. Besides, holding an ATM card means temptation to spend and less likely to save and use remittance money for investment so you have to weigh your options.

7. Remit using your mobile phone
Your mobile phone is one of the most convenient device on hand, so grab the chance to use it to send money back home if your network supports it. Philippine networks with international presence usually have this service. Smart’s mobile remittance and Globe Telecom’s GCASH service are two examples of money remittance made possible through mobile phones.

Source [ OFW ]

Italy’s Remittance Tax Hurts OFWs

Many Filipino workers in Italy have expressed disappointment with the recent imposition of a 2 per cent tax on money remittance sent by foreign migrant workers.

“Hindi ako pumapayag doon. Binabawasan na nga ang ating sweldo ng gubyerno ng Italya, ano pa matitira sa ating pera? Wala na,” said overseas Filipino worker (OFW) Adoracion Buhay.

The new tax measures are part of the Italian government’s bold austerity measures in an effort to fight back a stinging debt crisis that hounded eurozone’s third largest economy. Despite strong opposition from Italy’s largest labor group, a session in the Senate budget committee approved the 2 per cent tax on money remittance sent by foreign migrant workers through banks and other money transfer agencies.

“Magkano na lang ba ang natitira sa sweldo ng Pinoy plus padami ng padami ang tao dito, ang mga estranghero, padami ng padami nawawalan ng trabaho so bumababa yung salary in effect,” said another OFW, Dante Perez.

The new remittance tax is an additional burden to foreign workers who are already charged with hefty cable charges for money transfer transactions. Italy’s labor union group added that foreign workers should not be made to suffer because of the current economic problems of Italy.

LBP ties up with Italy’s Poste Italiane

The Land Bank of the Philippines has tied up with Poste Italiane, the Italian government post office, to bring remittance service closer to Filipino workers in Italy.

Poste Italiane has 14,000 branches all over Italy and Filipinos can transact their remittance business with any of these branches, whether they have an existing account with Landbank or not.

Government-owned Landbank also has partnerships with Korea Post and Japan Post.

According to Landbank OFW Remittance Group head Roberto Vergara, remittance activities with the Japanese partners are going smoothly and gaining momentum despite the calamities that hit Japan in March.

“Even after the calamity in Japan, remittance inflow remained strong,” said Vergara.

Filipinos in Japan are sending remittances via 233 Japan Post bank branches and 7,000 post offices with international services.

Funds credited to Landbank accounts can be withdrawn from any of the bank’s 900 ATM’s all over the country.

Continue reading at Malaya