Remittances from Mideast likely to remain resilient - BusinessWorld Online

Repatriated overseas Filipino workers (OFWs) from Abu Dhabi are seen inside a plane after it arrived in Manila in this file photo.The Philippine government has repatriated OFWs affected by the conflict in the Middle East.

— PHILIPPINE STAR/RYAN BALDEMOR By Katherine K.Chan, Reporter FILIPINOS WORKING in the Middle East are likely to send more money home in the coming months to help their families cope with faster inflation driven by the energy crisis, while also taking advantage of the peso’s weakness to maximize the value of their remittances, analysts said.

“Overall, analysts expect remittances to remain fairly resilient, unless the war severely disrupts labor markets or triggers mass repatriations,” Ser Percival K.Peña-Reyes, a senior research fellow at Ateneo Center for Economic Research and Development, told BusinessWorld in an e-mail.

“Historically, OFW (overseas Filipino worker) remittances have proven durable during geopolitical and economic shocks because Filipino workers prioritize supporting families during uncertain periods,” he added.Cash remittances from the Middle East bucked projections after growing nearly 20% to $565.91 million in March from $471.836 million in February. The Manila-based Asian Development Bank and international credit rater Moody’s Ratings earlier warned that the Philippines could see a drop in remittance flows if the war in the region drags on.

However, Bangko Sentral ng Pilipinas (BSP) data also showed that overall cash remittances rose by 2.3% to $2.874 billion in March, with 19.69% coming from the Middle East.Analysts said this may also be due to steady employment despite the conflict and the strong United States dollar and other Middle East currencies helping families of OFWs in the country receive higher remittance value.

“OFWs receiving hazard pay in the region may have also been able to send more money back home.The need for remittances likely outweighed ...