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Friday, October 05, 2018

What Caused OFW Remittance Drop From The Middle East?

Due to the high inflation rate which causes the price of almost everything to shoot up, the families of the overseas Filipino workers require more remittances coming from their breadwinner to catch up with the rising prices. However, instead of the inflation to cause the remittances to increase, the Bangko Sentral Ng Pilipinas statistics are telling otherwise.
Due to the high inflation rate which causes the price of almost everything to shoot up, the families of the overseas Filipino workers require more remittances coming from their breadwinner to catch up with the rising prices. However, instead of the inflation to cause the remittances to increase, the Bangko Sentral Ng Pilipinas statistics are telling otherwise. Ads Sponsored Links Cash remittance from Filipino workers (OFW), particularly those in the Middle East, saw a steep decline from January to July this year, figures from the Central Bank of the Philippines (BSP) show. A lawmaker noted that even the lifting of the ban on the deployment of Filipinos to Kuwait last May failed to stop the remittance plunge. Based on the latest BSP data, there was a 15 percent decrease in remittances from OFWs in the Middle East, although fund transfers from Libya and Israel fell the most at 73 percent and 61 percent respectively. With that, Rep. Henry Ong, chairman of the House Committee Chair on Banks & Financial Intermediaries, said the policy shift in OFW deployment priorities must happen “sooner rather than later.” “Filipinos are being held hostage by armed groups in Libya. Israel recently welcomed President Rodrigo Duterte on a brief visit. However, the remittances from these two countries pale in comparison with those from Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Oman, which were in the high double-digit percentages decline,” he said. Remittances from Kuwait fell by 20.4 percent despite the resumption of OFW deployment last May. Bahrain showed negative 22.9 percent, transfers from Oman dropped by 38.3 percent and Saudi Arabia showed a slide of 10.4 percent. Qatar is the exception. The remittances decline from Filipino workers there was only 6.3 percent. Meanwhile, aside from the decrease in cash remittance, the Philippines also suffered a decline in the deployment of OFWs in 2017 after 10 years of continuous growth. Remittances from overseas Filipino workers (OFWs) dropped by 4.5 percent in June to clock in at $2.4 billion, down from the $2.5 billion received in May and breaking the trend growth in inflows. In a statement, the Bangko Sentral ng Pilipinas (BSP) said they recorded lower OFW transfers from the Middle East, particularly from those in the United Arab Emirates, Saudi Arabia, and Kuwait. These are particularly the areas covered by deployment ban for OFWs announced by President Rodrigo Duterte in early 2018. This brought total remittances to $14.2 billion during the first semester, just 2.7 percent higher from a year ago. The BSP is seeing remittances to go four percent higher in 2018. Meanwhile, the overall remittances which came from countries other than the Middle East seem to bounce back recently. File under the category of high inflation rate, overseas Filipino workers , remittances, statistics,Bangko Sentral Ng Pilipinas


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Cash remittance from Filipino workers (OFW), particularly those in the Middle East, saw a steep decline from January to July this year, figures from the Central Bank of the Philippines (BSP) show.


A lawmaker noted that even the lifting of the ban on the deployment of Filipinos to Kuwait last May failed to stop the remittance plunge.

Based on the latest BSP data, there was a 15 percent decrease in remittances from OFWs in the Middle East, although fund transfers from Libya and Israel fell the most at 73 percent and 61 percent respectively.

With that, Rep. Henry Ong, chairman of the House Committee Chair on Banks & Financial Intermediaries, said the policy shift in OFW deployment priorities must happen “sooner rather than later.”

“Filipinos are being held hostage by armed groups in Libya. Israel recently welcomed President Rodrigo Duterte on a brief visit. However, the remittances from these two countries pale in comparison with those from Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Oman, which were in the high double-digit percentages decline,” he said.

Remittances from Kuwait fell by 20.4 percent despite the resumption of OFW deployment last May. Bahrain showed negative 22.9 percent, transfers from Oman dropped by 38.3 percent and Saudi Arabia showed a slide of 10.4 percent. 

Qatar is the exception. The remittances decline from Filipino workers there was only 6.3 percent.

Meanwhile, aside from the decrease in cash remittance, the Philippines also suffered a decline in the deployment of OFWs in 2017 after 10 years of continuous growth.

Remittances from overseas Filipino workers (OFWs) dropped by 4.5 percent in June to clock in at $2.4 billion, down from the $2.5 billion received in May and breaking the trend growth in inflows.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said they recorded lower OFW transfers from the Middle East, particularly from those in the United Arab Emirates, Saudi Arabia, and Kuwait.

These are particularly the areas covered by deployment ban for OFWs announced by President Rodrigo Duterte in early 2018.

This brought total remittances to $14.2 billion during the first semester, just 2.7 percent higher from a year ago.

The BSP is seeing remittances to go four percent higher in 2018.

Meanwhile, the overall remittances which came from countries other than the Middle East seem to bounce back recently.
File under the category of high inflation rate, overseas Filipino workers , remittances,  statistics,Bangko Sentral Ng Pilipinas

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As overseas Filipino workers (OFW) working in an unfamiliar territory, we feel comfortable whenever we see a compatriot or a fellow Filipino abroad. In some instances, very unfortunate things happen like getting into a trouble because of a fellow Filipino. The Department of Foreign Affairs (DFA) and the Consulate General in Saudi Arabia confirmed that an OFW was stabbed and killed by a fellow OFW in Jeddah, KSA. Ads Sponsored Links A Filipino was stabbed and killed by a fellow Filipino in Jeddah, Saudi Arabia, according to the confirmation of the Department of Foreign Affairs (DFA). The victim (name withheld) was a 29-year-old from Datu Odin Sinsuat, Maguindanao, who worked as a family driver in Jeddah. The suspect (name withheld), a 34-year-old from Capiz, also a driver for the same family The suspect remains under police custody after he was arrested immediately after the incident. The two "allegedly engaged in a fistfight in front of the house of their employer that ended in the victim getting fatally stabbed by his fellow driver." The motive of the stabbing is still unknown. The Consulate General and the Philippine Overseas Labor Office in Jeddah will extend full assistance to both Filipinos as well as their families. The victim is set for a vacation to the Philippines soon but the incident turned out to be unfortunate that he will come home inside a box. Consul General Edgar Badajos said that the suspect is facing a death sentence as per Saudi Sharia law. However, since they are both Filipinos, it is possible that the victim's family could instead He assured that they will render assistance to help both OFWs. Filed under the category of overseas Filipino workers, Filipino abroad, Department of Foreign Affairs (DFA), Saudi Arabia, stabbed, Jeddah, KSA

More often, families with overseas Filipino workers (OFW) rely on their OFW breadwinner in providing their needs and without doing any efforts to have extra income. They use the money they receive to pay their bills, rents, mortgages, etc. They tend to spend the remittances they receive and wait for the next remittance when the money is over without any savings. This is the reason why no matter how long the OFWs exhaust themselves working overseas, they are still coming home broke and without any savings. Encouraging our spouse or anyone who is responsible for the remittances you send to save could be a great help and could guarantee a hassle-free retirement, much more if they placed this savings to a profitable investment. Ads Sponsored Links Stick to a budget schedule Convince your spouse to make a monthly budget and commit to saving a portion of the monthly remittance. They could also spend the remaining part of the budget after setting aside the savings. No matter how small the savings, it could mean a lot after a period of time you regularly do it. Use the credit card wisely or do not use it at all Credit cards could be an advantage when purchasing but it can also lure the holder to spend more. Whenever possible, avoid using credit cards and use cash instead. It would save you from paying extra charges and interests which can really raise your spending. The best rule should be, do not spend the money you do not have. Always make a list of important things to buy Many OFW spouses tend to go on a shopping spree just after receiving the remittance and let their impulses lead in which items they like to buy at the very moment without putting their priorities on the things they really needed. Encourage them to develop a habit and discipline of making a list of the things they need to prioritize during shopping and strictly follow what is on the list to avoid spending too much on the things that are not really important. Live a lifestyle that suits your income Many OFW spouses live like one day millionaire. after claiming the remittances you sent, they will go straight to the mall, eat at the fast-food chain of their choice, go on a shopping spree buying what they want without even thinking if they still have the money to go through the month until the next remittance. If their budget got short, they would borrow money from someone which would cause the next budget to bear the shortage and the cycle goes on. There's nothing wrong with being generous but not too much Advise your spouse to exercise caution when giving help to extended families, relatives or friends. There is nothing wrong with extending help but there has to be a limitation. This would avoid them to become dependent on your assistance that they would knock your everytime they need financial help. Working overseas is not forever and you will eventually come home for good. It is you and your spouse who need to work hand-in-hand to succeed. Together you must find ways to take care of your finances and save for the future of your family. Filed under the category of overseas Filipino workers, extra income, bills, rents, mortgages, remittances, working overseas, retirement, investment, savings
More often, families with overseas Filipino workers (OFW) rely on their OFW breadwinner in providing their needs and without doing any efforts to have extra income. They use the money they receive to pay their bills, rents, mortgages, etc. They tend to spend the remittances they receive and wait for the next remittance when the money is over without any savings. This is the reason why no matter how long the OFWs exhaust themselves working overseas, they are still coming home broke and without any savings. Encouraging our spouse or anyone who is responsible for the remittances you send to save could be a great help and could guarantee a hassle-free retirement, much more if they placed this savings to a profitable investment. Ads Sponsored Links Stick to a budget schedule Convince your spouse to make a monthly budget and commit to saving a portion of the monthly remittance. They could also spend the remaining part of the budget after setting aside the savings. No matter how small the savings, it could mean a lot after a period of time you regularly do it. Use the credit card wisely or do not use it at all Credit cards could be an advantage when purchasing but it can also lure the holder to spend more. Whenever possible, avoid using credit cards and use cash instead. It would save you from paying extra charges and interests which can really raise your spending. The best rule should be, do not spend the money you do not have. Always make a list of important things to buy Many OFW spouses tend to go on a shopping spree just after receiving the remittance and let their impulses lead in which items they like to buy at the very moment without putting their priorities on the things they really needed. Encourage them to develop a habit and discipline of making a list of the things they need to prioritize during shopping and strictly follow what is on the list to avoid spending too much on the things that are not really important. Live a lifestyle that suits your income Many OFW spouses live like one day millionaire. after claiming the remittances you sent, they will go straight to the mall, eat at the fast-food chain of their choice, go on a shopping spree buying what they want without even thinking if they still have the money to go through the month until the next remittance. If their budget got short, they would borrow money from someone which would cause the next budget to bear the shortage and the cycle goes on. There's nothing wrong with being generous but not too much Advise your spouse to exercise caution when giving help to extended families, relatives or friends. There is nothing wrong with extending help but there has to be a limitation. This would avoid them to become dependent on your assistance that they would knock your everytime they need financial help. Working overseas is not forever and you will eventually come home for good. It is you and your spouse who need to work hand-in-hand to succeed. Together you must find ways to take care of your finances and save for the future of your family. Filed under the category of overseas Filipino workers, extra income, bills, rents, mortgages, remittances, working overseas, retirement, investment, savings
More often, families with overseas Filipino workers (OFW) rely on their OFW breadwinner in providing their needs and without doing any efforts to have extra income. They use the money they receive to pay their bills, rents, mortgages, etc. They tend to spend the remittances they receive and wait for the next remittance when the money is over without any savings. This is the reason why no matter how long the OFWs exhaust themselves working overseas, they are still coming home broke and without any savings. Encouraging our spouse or anyone who is responsible for the remittances you send to save could be a great help and could guarantee a hassle-free retirement, much more if they placed this savings to a profitable investment. Ads Sponsored Links Stick to a budget schedule Convince your spouse to make a monthly budget and commit to saving a portion of the monthly remittance. They could also spend the remaining part of the budget after setting aside the savings. No matter how small the savings, it could mean a lot after a period of time you regularly do it. Use the credit card wisely or do not use it at all Credit cards could be an advantage when purchasing but it can also lure the holder to spend more. Whenever possible, avoid using credit cards and use cash instead. It would save you from paying extra charges and interests which can really raise your spending. The best rule should be, do not spend the money you do not have. Always make a list of important things to buy Many OFW spouses tend to go on a shopping spree just after receiving the remittance and let their impulses lead in which items they like to buy at the very moment without putting their priorities on the things they really needed. Encourage them to develop a habit and discipline of making a list of the things they need to prioritize during shopping and strictly follow what is on the list to avoid spending too much on the things that are not really important. Live a lifestyle that suits your income Many OFW spouses live like one day millionaire. after claiming the remittances you sent, they will go straight to the mall, eat at the fast-food chain of their choice, go on a shopping spree buying what they want without even thinking if they still have the money to go through the month until the next remittance. If their budget got short, they would borrow money from someone which would cause the next budget to bear the shortage and the cycle goes on. There's nothing wrong with being generous but not too much Advise your spouse to exercise caution when giving help to extended families, relatives or friends. There is nothing wrong with extending help but there has to be a limitation. This would avoid them to become dependent on your assistance that they would knock your everytime they need financial help. Working overseas is not forever and you will eventually come home for good. It is you and your spouse who need to work hand-in-hand to succeed. Together you must find ways to take care of your finances and save for the future of your family. Filed under the category of overseas Filipino workers, extra income, bills, rents, mortgages, remittances, working overseas, retirement, investment, savings
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