BSP monitors Ukraine conflict, COVID-19 impact on remittances

The Bangko Sentral ng Pilipinas (BSP) is monitoring the Russia-Ukraine conflict and rising COVID-19 cases for their potential impact on remittances.

BSP Governor Benjamin Diokno noted that while remittances from Ukraine and Russia are minimal, escalation involving NATO countries could significantly affect inflows.

In 2021, remittances from EU and UK accounted for approximately 11 percent of total overseas Filipino cash remittances.

The resurgence of COVID-19 cases in key Filipino host economies like Hong Kong and South Korea is another concern.

Despite these risks, the BSP forecasts a 4 percent growth in remittances for the current year, with a record-high USD34.1 billion received in 2021.

The historical resilience of remittances during crises is attributed to the altruistic nature of overseas Filipinos.

Remittances are crucial for boosting domestic demand and providing foreign currency reserves, contributing significantly to the country's balance of payments and gross international reserves.