MikeLigalig.com

source: PNA

By Joann Santiago

The Bangko Sentral ng Pilipinas (BSP) is maintaining its five percent 2012 growth forecast for remittances as expansion of inflows from overseas Filipinos has been registering above target since January.

BSP Governor Amando Tetangco Jr., in a briefing for the government’s mid-year economic briefing at Philippine International Convention Center (PICC), said actual inflows are “on track” for this year’s target.

In the first seven months this year, total inflows coursed through banks rose by 5.2 percent to US$ 11.94 billion while last July’s level increased by 5.4 percent to US$ 1.81 billion.

Relatively, personal remittances, which is the net compensation of Overseas Filipino Workers (OFWs) who have work contracts of less than a year, went up by 5.3 percent year-on-year in end-July this year to US$ 13.28 billion while last July’s figure rose by 5.4 percent to US$ 2 billion.

Tetangco explained that “it would be more realistic to stick to the five percent” target.

“Even if the growth is slightly above, it is not significantly above the forecast,” he said.

“In terms of the growth rate, it may pick up but it will not pick up that much,” he pointed out.

On the other hand, the central bank chief said monetary officials are currently reviewing the targets for the gross international reserves (GIR), the balance of payment (BOP) and its components particularly in the capital account.

As of last August, the country’s foreign reserves hit US$ 80.8 billion, already way ahead of the US$ 77.5-78 billion target for the year.

“It is already higher than what is projected so we have to also adjust GIR target upward,” he said.

Relatively, the BOP registered a surplus of US$ 4.5 billion as of last July, also ahead of this year’s US$ 2.6 billion target.

Tetangco said actual figures for both the foreign reserves and the BOP are already ahead of the targets, thus, the targets have to be adjusted.

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