News Update OFW remittances slowed down in Sept. – report

An investment bank and a think tank said in their latest joint report on the economy and financial markets that the growth of remittances of overseas Filipinos has slowed down. In their Market Call, First Metro Investment Corporation and the Capital Markets research unit of the University of Asia and the Pacific noticed that “there has been a slight deceleration as its annual growth from the double-digit year-on-year growth in August of 11.1 percent to 8.4 percent September. But on a per quarter basis, “the Q3 2011 remittances moved up to 8.6 percent from 6.7 percent in Q2 2011.” FMIC and UA&P said the crises in the Middle East, Europe and the United States led to in slower growth of remittances compared to the same period in 2010 despite the 19.5 percent growth in foreign deployment of workers. The Market Call also said the slower appreciation of the peso let overseas workers and their dependents get more pesos from every dollar sent home. Monthly OFW remittances has stayed stuck at about $1.7 billion in five straight months to September. “The peso equivalent of remittances rose from 4.3 percent to 5.3 percent due to the slower 2.9 percent appreciation of the peso from P44.31:$1 in September 2010 to P43.03:$1 in September 2011,” it said. —ELR/VS