Manila, Philippines – According to Bangko Sentral ng Pilipinas (BSP), remittances are expected to grow and expand in spite of the deployment ban to Kuwait.
President Duterte took action over the sexual abuse cases to our OFWs. Most Filipino domestic workers suffered in foreign countries. Kuwait is probably just one of those. On January 19th, there was an issuance of Administrative Order 25 by the Labor Secretary Silvestre Bello III. It is an order to Philippine Overseas Employment Association (POEA) to stop processing and issuing employment certificates to all Kuwait-bound workers. There are approximately 276,000 Filipino workers based in Kuwait.
Remittances overseas play a significant role in our foreign exchange. With the implementation of the Administrative Order, it may affect the flow of cash that comes from abroad. Contrary to that, BSP Deputy Governor Diwa Guinigundo said that it would actually expand by four percent this year. Given that Kuwait’s cash remittances amounts to approximately three percent only. With that percentage, the impact would not be that notable.
The deputy also concluded that there are other countries that in dire need of Filipino workers. Filipinos can still site employment and tried their luck in those countries. Through those deployments, we can see how the remittances will still expand over the years. A lot of Filipinos leave the Philippines for better money. As long as there’s availability, we plunge in to the opportunity. It is a sad truth. But then, foreign exchange rate may rise affecting our currency appreciation.
BSP released the data of cash remittances through banks amounting to $24.34 billion. The figures are gathered starting January to November of 2016. Last 2017, it amounted to $25.32 billion covering the same months. The rate increased by four percent in just a year and is expected to ascend higher this year.
The sum of personal remittances that came from households and capital transfers is $28.24 billion. That is 5.1% higher than the previous amount of $26.88 billion.
Guinigundo also revealed that Business Process Outsourcing (BPO) stand in the country’s foreign exchange. BPO’s revenue cost $16.9 billion from January to September last year. BPO has ended 2017 with the amount of $22 billion. It is still a little bit short in comparison to cash remittances that accumulated $25.32 billion.
The deployment ban to Kuwait may be sad news to others but to some, especially those who suffer from other race’s mistreatment; it is a sense of hope and justice. Still, it is a good news that it won’t affect the flow of remittances.