10 facts to know about OFW remittances: Can digital money help cut fees?
That’s not the whole story. Their number, and their esteemed status, are just indicative of a bigger picture. While most have become naturalised citizens or permanent residents in their adopted country, a significant portion of their income overseas is sent home in the form of remittances.
The result: the Philippines has consistently ranked among the top recipients of remittances. Here’s what to know about OFW remittances:
#1. There are 10 million Filipinos overseas
Officially, there are 2 million listed as OFWs, but there are a total of estimated 10 million Filipinos overseas (including their families) — about 10 per cent of the country’s population. That’s equivalent of 18,382 fully-loaded Airbus A380s.
Most keep their close links with home and send money to loved ones regularly. Total remittances — as perby the country’s central bank (Bangko Sentral ng Pilipinas, BSP) hit a record $34 billion in 2021 — and comprise a significant part of the country’s foreign exchange earnings.