MANILA, Philippines - Remittances climbed the most in seven months in August, amid a weakening peso.
Cash remittances, which help power domestic consumption, grew 6.8% to $1.92 billion in August, the fastest since January when remittances grew 8%. The peso courted the 45 to $1 level in August, as investors who thought the US Federal Reserve will begin cutting stimulus began dumping emerging market assets.
The Fed later decided to delay the stimulus cut and the peso had since recovered from three-year lows.
Remittances in January to August reached $14.55 billion, up 5.9% from last year.
The steady deployment of overseas Filipino workers remained one of the key drivers of growth in remittance flows, the central bank said in a statement.
Total personal remittances, which represent the sum of net compensation, household-to-household transfers in cash and kind, and capital transfers of overseas Filipino workers, rose 7.4 percent in August from a year earlier to $2.1 billion.
The central bank expects cash remittances from Filipinos abroad to grow 5 percent this year. Cash remittances in 2012 reached $21.39 billion, up 6.3 percent from a year earlier.
The major sources of cash remittances in August were the United States, Saudi Arabia, the United Kingdom, United Arab Emirates, Singapore, Canada and Japan.
Remittances have held up well despite the global economic turmoil, keeping domestic consumption robust, which in turn helped offset weak global demand for the country's exports. - With ANC and Reuters