By Katherine K. Chan, Reporter
CASH REMITTANCES rose to its highest monthly level in July this year as overseas Filipino workers (OFWs) sent home more money ahead of the school season, with the weak peso also providing some support, preliminary central bank data showed.
According to the Bangko Sentral ng Pilipinas (BSP), cash remittances coursed through banks grew by 1.9% year on year to $3.24 billion in July from $3.179 billion.
This was the highest value of monthly remittances seen in seven months or since the $3.522 billion logged in December 2025.
In terms of growth, it was the fastest pace since the 2% in May.
Month on month, cash remittances rose by 6.6% from $3.039 billion in June.
“The United States remained the top source of inflows, followed by Singapore and Saudi Arabia, based on reported remittance transactions by origin,” the BSP said in a statement on Tuesday.
Land-based workers sent the bulk of cash remittances in July with $2.65 billion, inching up 2.1% from $2.59 billion last year.
On the other hand, remittances from sea-based workers grew by 1.3% year on year to $590 million.
Ser Percival K. Peña-Reyes, a senior research fellow at the Ateneo Center for Economic Research and Development, said the rise in cash remittances was likely driven by seasonal factors such as increased spending ahead of the school season.
“Seasonal remittance patterns, stronger inflows from major host economies, and OFWs sending more ahead of school-related and household expenses likely lifted July flows,” he said via Facebook Messenger.
Meanwhile, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas noted that the peso’s recent depreciation also slightly boosted the value of remittances.
“Remittances continue to demonstrate resilience and remain a critical buffer for the Philippine economy,” he said in a Viber message.
“The latest data suggest steady — not spectacular — growth, with the weaker peso providing additional support but not fundamentally changing the long-term trajectory of remittance inflows,” he added.
In July, inflation concerns amid soaring oil prices and strong demand for the dollar dragged the peso to new record lows. The peso plunged to as low as P61.847 against the greenback on July 24.
A weaker peso boosts the value of dollar-denominated remittances in the local currency.
Meanwhile, personal remittances, which include both cash coursed through banks and informal channels as well as in-kind remittances, climbed by 2% to $3.603 billion from $3.533 billion a year earlier.
On a seasonally adjusted basis, personal remittances inched up by 0.6% month on month.
“Seasonally adjusted personal remittances, which include cash sent through banks and informal channels as well as remittances in kind, likewise increased in July 2026, indicating stronger underlying remittance dynamics after accounting for recurring seasonal patterns,” the central bank said.
SEVEN-MONTH REMITTANCES
In the first seven months of the year, cash remittances from migrant Filipinos reached $20.389 billion, 2.3% higher than the $19.932 billion recorded in the comparable year-ago period.
Most of the money sent home came from land-based OFWs, which rose by 2.4% to $16.35 billion as of end July from $15.97 billion in the prior year.
Meanwhile, sea-based migrant workers have so far remitted $4.04 billion at end-July. This was up 2% from the $3.96 billion seen last year.
Of the total, cash remittances from the United States accounted for 39.7%, followed by Singapore (7.1%), Saudi Arabia (6.3%), Japan (5%), and the United Kingdom (4.7%).
Cumulative personal remittances also grew to $22.726 billion in the seven-month period, up by an annual 2.3% from $22.206 billion previously.
“These inflows provided continued support to household consumption and domestic economic activity, underscoring the resilience of remittance flows as an important source of external financing and household income,” the central bank said.
For Mr. Peña-Reyes, remittances will likely sustain a modest recovery for the remainder of the year.
“The recovery will likely continue, albeit modestly,” he said, adding that inflows will be driven by OFW employment, economic conditions in host countries, oil prices, and the peso’s performance against the dollar.
However, Mr. Peña-Reyes noted that the local unit’s continued weakness versus the dollar might only provide a limited boost to remittance growth.
“A weaker peso raises the peso value received by families, but does not necessarily increase dollar remittances. Its boost to underlying cash-remittance growth is, therefore, likely limited,” he said.
On the other hand, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that families of OFWs continue to benefit from the exchange rate, even as higher local prices partly offset the gains from a stronger dollar.
“OFWs and their families to also benefit from near record-high US dollar/peso exchange rate, now at P62.80 levels, up by more than 9% since the war on Iran/Middle East started on Feb. 28… resulting in more peso proceeds from OFW remittances but offset by the resulting higher local prices or inflation, but still better off than those that just earn in pesos,” he said via Viber.
The local unit continued to test new lows after breaching the P62 handle for the first time in August.
On Tuesday, the peso slightly recovered to close at P62.835 against the dollar, up 2.5 centavos from its all-time low finish of P62.86 on Monday, Bankers Association of the Philippines data showed.
However, it hit its worst intraday low in history of P62.925 to the dollar, breaking its previous record of P62.875 on Monday.
Mr. Ricafort sees remittances growing between 2% and 3% until yearend.
“OFW remittances growth could be sustained at the 2%-3% growth levels in the coming months, unless weighed by slower OFW remittances from the Middle East and also by more protectionist policies by the Trump administration on immigration that could potentially reduce OFW remittances from the US,” he said.
The BSP expects cash remittances to grow by 2.7% annually to $36.6 billion this year, slower than the 3.3% to $35.6 billion in 2025.
