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BSP wary of Russia-Ukraine conflict's impact on remittances

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Warren De Guzman, ABS-CBN News

<p>MANILA - The Bangko Sentral ng Pilipinas on Friday said it remained watchful of the ongoing tension between Russia and Ukraine and the resurgence of COVID-19 cases in some countries as these could negatively impact remittances. </p><p>“There may be significant implications for remittances if there is an escalation of the conflict to the greater Euro area,&quot; BSP Governor Banjamin Diokno said. </p><p>Remittances from the EU, including the United Kingdom, accounted for about 11 percent of the total overseas Filipino (OF) cash remittances in 2021, he said.</p><p>&quot;The other risk is the current resurgence of coronavirus, especially in OF host economies such as Hong Kong and South Korea,&quot; Diokno said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/overseas/03/23/22/south-koreas-total-covid-cases-top-10-million">South Korea&#x27;s total COVID cases top 10 million as crematoria, funeral homes overwhelmed</a></li>	<li><a href="https://news.abs-cbn.com/overseas/03/20/22/hong-kong-plans-to-review-covid-restrictions-on-monday">Hong Kong plans to review COVID restrictions on Monday as cases ease</a></li></ul><p>But Diokno is also confident that if the Ukraine-Russia conflict is contained, remittances should do well. </p><p>He added that remittances have remained resilient throughout various crises, including the COVID-19 pandemic, as overseas Filipinos are quite altruistic and tend to send more money home when times are hard.</p><p>Overseas Filipino remittances boost domestic demand and provide much needed foreign currency to buffer the Philippines from external shocks.</p><p>Over the last decade, remittances have been consistent, with totals equaling roughly 8 to 9 percent of GDP, and 26 to 37 percent of Gross International Reserves.</p><p>The BSP expects OF remittances to grow 4 percent this year, slower than the 5.1 percent growth in 2021.</p><p>With an already huge base, a 4 to 5 percent growth in remittances this year would be &quot;substantial,&quot; Diokno said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/16/22/cash-remittances-up-25-percent-in-january-bsp">Cash remittances up 2.5 percent in January: BSP</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1725290" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

The BSP said it was watchful of the Russia-Ukraine tension's potential negative impact on remittances. 

BSP wary of Russia-Ukraine conflict's impact on remittances

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BSP wary of Russia-Ukraine conflict's impact on remittances

Warren De Guzman,

ABS-CBN News

Published Mar 25, 2022 12:37 PM PHT

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OF Remittances

Ukraine

Russia

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GIR

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overseas Filipinos

overseas Filipino workers

OFW

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