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Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
Leveraging Remittances for Development
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Leveraging Remittances for Development

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a Presentation by the Bangko Sentral ng Pilipinas (BSP) at the BSP Regional Financial Literacy Campaign for OFWs in Bacolod City, Philippines on June 28, 2007

a Presentation by the Bangko Sentral ng Pilipinas (BSP) at the BSP Regional Financial Literacy Campaign for OFWs in Bacolod City, Philippines on June 28, 2007

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  • Ladies and gentlemen, good afternoon. The Bangko Sentral ng Pilipinas is very glad to bring its Financial Literacy Campaign for Overseas Filipinos and their families in Bacolod. Together with the Overseas Workers Welfare Administration (OWWA) and other partner agencies, the BSP has covered so far 12 major cities around the country since this activity was launched in February 2006. Three more Financial Literacy Campaigns are lined up for the rest of 2007 as we aim to reach out to more OFWs and their beneficiaries. The continued exodus of Filipinos in search of better-paying jobs overseas and the rising amount of remittances that they send to their families in the Philippines have stirred the interest of many, including the Bangko Sentral, to map out various initiatives to improve the remittance environment and to channel these remittances to productive undertakings.
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    • 1. Leveraging Remittances for Development Financial Literacy Campaign for Overseas Filipinos and Families 28 June 2007 Mayfair Plaza, Bacolod City Bangko Sentral ng Pilipinas
    • 2. Trends in Remittances of Overseas Filipinos
    • 3. <ul><li>Increased demand for Filipino workers </li></ul><ul><li>Better capture of remittances by local commercial banks </li></ul>OFW Remittances (in US$ billion) */ OFW remittances sustain growth */ Based on bank reports
    • 4. 1/ Cash remittances coursed through the banks OF REMITTANCES 165.9 (J-Mar.) 18.7 (Apr) 491.6 (J-Mar.) 25.8 (J-Mar.) 11.1 (J-Mar.) 26.1 4.68 (J-Apr.) 2007 96.6 40.2 270.1 14.9 8.0 -10.9 6.05 2000 161.5 55.6 544.2 24.7 10.9 19.4 12.76 2006 142.2 57.8 576.5 23.9 10.9 25.0 10.69 2005 12.8 10.1 14.2 -0.3 Growth Rate (%) 8.55 7.58 6.89 6.03 Level (in US$ Bil) 1/ Remittances as % of: 118.5 51.7 1242.7 20.0 9.9 2004 95.3 44.4 1543.4 19.6 9.5 2003 88.7 42.1 446.6 18.2 9.0 2002 92.4 38.4 3092.8 17.5 8.5 2001 DSB GIR FDI XGS GDP
    • 5. Macro Economic Benefits of Remittances
    • 6. Macroeconomic Benefits of Remittances <ul><li>provide FX supply healthy BOP, </li></ul><ul><li> strong GIR </li></ul><ul><li>stabilize exchange rate stable price </li></ul><ul><li> stimulate consumption production activity </li></ul>
    • 7. Harnessing Remittances for Development
    • 8. <ul><li>Remittances can be harnessed for investments, in the form of: </li></ul><ul><ul><li>human resource capital investments through education and health care for beneficiaries; </li></ul></ul><ul><ul><li>physical capital investments through acquisition of real properties, including land purchases and home construction; </li></ul></ul><ul><ul><li>financial capital investments through savings in bonds and other financial instruments; and </li></ul></ul><ul><ul><li>investments in business ventures such as in small- and micro- enterprises (SMEs). </li></ul></ul>
    • 9. <ul><li>BSP initiatives to improve the remittance environment </li></ul><ul><ul><ul><ul><li>Enhance transparency and promote competition in the remittance market </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Posting of remittance charges; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>OFW portal (www.bsp.gov.ph) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Improve the country’s payments and settlements system (e.g., interconnection of three major ATM Network, alternative modes of remittances) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Improve access to financial services (e.g., simplification of Identification of bank clientele) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>encouraging OFWs and their families to increase savings and investments; and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>promoting advocacy programs to cultivate financial literacy among OFWs and their families (e.g., FLCs) </li></ul></ul></ul></ul>
    • 10. PESO REMITTANCE CONSUMPTION SAVINGS SMEs/MICROFINANCE Bank instruments (TD/SD/ Mutual funds/UITF) P5,000 up Savings in Cooperatives TD/SD P5,000 up Treasury instruments T-bills, T-notes P100,000 up Stock Market Insurance (life, non-life, Education, pension) Real Estate Others Agri-business Retail business Lending business Others
    • 11. Survey of Remittance Charges *The bank notifies the beneficiary of the remittance by phone; the beneficiary picks up the remittance from the nearest branch. 3.76-4.76 3.82 7.71-15.42 10.97-18.74 8.09-14.18 8.00-16.00 4. Advice and Pay * 4.99-9.82 9.60 9.70-17.27 13.96-23.53 14.09-17.59 16.00-19.00 Provinces 4.40-6.79 6.71 9.70-15.42 13.96-23.53 12.09-14.59 14.00-17.00 Metro Manila             3. Door-to-Door: 2.94-3.80 3.82 9.70-13.58 10.97-18.74 10.09-14.59 8.00-17.00 2. Credit Other Local Bank 2.94-3.76 3.82 7.85-11.73 9.48-13.96 7.09-11.59 8.00-12.00 1. Credit to Account (Own Bank) 2006 2000 2006 2000 2006 2000   200 600 400 Ave. Amt. of Remittance per transaction Singapore United Kingdom USA Source of Remittance (in US $, including FX mark-up)
    • 12. Website: www.bsp.gov.ph E-mail: [email_address]

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