Expatriates send money to Philippines is considered t be significant support of the developing country. The national Central Bank (BSP) has developed an interactive website to support overseas Filipinos with their money transfer and investment considerations. The portal will connect users to information on the various banks and non-bank remittance businesses in the Philippines, including locations of their subsidiaries abroad, remittance center, foreign bank/correspondents, products and services, and charges/fees for remittance.
The Department of Finance (DOF) and the Land Bank of the Philippines established a new Overseas Filipino Bank (OFB) in 2017 to provide investments and wealth management services to expat staff. The Philippines’ Diaspora to Development Initiative (D2D), LINKAPIL, the Overseas Filipinos Remittances for Development Project, and the Remittance for Development Council are also very involved.
How Can Filipino Government Increase Remittance And Ease Transaction Of Money to Households Of Expatriates?
The Bangko Sentral ng Pilipinas (or the Philippine Central Bank) has collaborated with the Overseas Workers Welfare Administration and the private sector (BDO Foundation) to strengthen efforts to enable remittance recipients to save and spend more to supplement existing initiatives, policies, and services in support of overseas Filipinos and their families. Just 35.5 percent of Overseas Filipino Workers (OFWs) families save a portion of their remittances, according to a 2018 survey, and just 5.1 percent invest. This is a problem faced and the utmost necessity to tackle. During the pandemic, expatriates in developed countries used to send money to Philippines online, which is encouraged by the analyst to increase remittance to the country.
Lack of knowledge and awareness about online money transfer to Philippines causes many low-income families to spend more money in terms of money transfer fees to receive money from abroad. Digital finance is a great support to increase remittance and help reduce poverty by saving a considerable amount of families.
What Is The Proportion Of Overseas Money Transfer To Philippines In GDP?
Remittances from overseas Filipinos account for 10% of the country’s gross domestic product on a consistent basis (GDP). Personal remittances, which include money transfer to Philippines and non-cash products that flow through both formal and informal networks, such as money or goods transported across borders, increased by 3% to a record high of $32.21 billion in 2018 up from $31.29 billion in 2017. Cash remittances, on the other hand, increased by 3.1 percent to $28.94 billion in 2018, up from $28.06 billion in 2017.