Philippine cash remittances grow 1.9% in August; year-to-date pace trails BSP's projection
A one-minute summary read by an AI voice.
Key points
- Cash remittances from overseas Filipinos reached USD 3.04bn in August, up 1.9% year on year, the same pace as July (1.9%).
- January–August cash remittances grew 2.2%, below the 2.7% BSP projects for the full year.
- Dollar remittance growth is far below consumer price inflation of 6.1% in August, although peso weakness lifts the peso value of each dollar sent.
Implications for lenders
With cash remittances up only 1.9% in dollars while inflation ran at 6.1% in August, lenders may need to haircut remittance income in affordability checks rather than assume growth. Collections strategies for borrowers who depend on transfers from abroad can benefit from tracking payment timing around remittance receipts.
Implications
Facts
August: cash remittances coursed through banks were USD 3.04bn, up from USD 2.98bn in August 2025, according to Bangko Sentral ng Pilipinas (BSP) data released on 15 October. 1 That is growth of 1.9%, the same pace as July (1.9%). 2 Personal remittances, a broader measure that includes in-kind and informal transfers, were USD 3.37bn, up 2% from USD 3.31bn in August 2025. 3
Year to date: January–August cash remittances totalled USD 23.42bn, up from USD 22.91bn in January–August 2025, growth of 2.2%. 4 Personal remittances totalled USD 26.1bn, up 2.3% from USD 25.51bn in January–August 2025. 5 The United States accounted for 39.8% of cash remittances in the period, ahead of Singapore and Saudi Arabia; BSP cautions that funds recorded as from the United States were not necessarily earned there. 6 BSP described the inflows as showing the resilience of remittances as a key source of household income.
Analysis
Against BSP's projection: on 13 October BSP projected cash remittance growth of 2.7% for 2026. 7 Year-to-date growth of 2.2% is below that, so September–December inflows would need to grow faster than in the first eight months for the projection to be met; that period includes the Christmas season, when transfers usually rise.
Against prices: headline inflation was 6.1% in August and 7.2% in September. 8 Remittances are measured in dollars and prices in pesos, so a weaker peso raises the peso amount households receive; even so, single-digit dollar growth of 1.9% leaves little room for remittance-dependent households whose costs are rising at 6.1% or more.
| 2026-03 | 4.1 |
|---|---|
| 2026-04 | 7.2 |
| 2026-05 | 6.8 |
| 2026-06 | 6.4 |
| 2026-07 | 6.2 |
| 2026-08 | 6.1 |
| 2026-09 | 7.2 |
Year-on-year change in the national consumer price index (PSA, 2018=100), monthly · Source: Philippine Statistics Authority, Summary Inflation Reports (2026-03, 2026-04, 2026-05, 2026-06, 2026-07, 2026-08, 2026-09)
Counterpoints and uncertainties
Peso depreciation can offset slow dollar growth in household purchasing power, and the BSP figures do not show the peso value received. The year-end season usually lifts remittances, so the full-year outcome may still approach BSP's projection. Country-of-origin data are distorted by where correspondent banks are located.
Key figures
- Cash remittances, August 2026 (BSP): USD 3.04bn (up from USD 2.98bn in August 2025). Cash remittances from overseas Filipinos coursed through banks, monthly, US dollars (BSP). Philippines, BSP data. Basis date: 31 Aug 2026. Source: GMA News: Cash remittances rose to $3.035B in August 2026 — BSP data (2026-10-15)
- Cash remittance growth, August 2026: 1.9% (same pace as July (1.9%)). Year-on-year change in monthly cash remittances in US dollars (BSP). Philippines, BSP data. Basis date: 31 Aug 2026. Source: GMA News: Cash remittances rose to $3.035B in August 2026 — BSP data (2026-10-15)
July growth as cited by RCBC chief economist Michael Ricafort (Daily Tribune, 15 Oct 2026).
- Personal remittances, August 2026 (BSP): USD 3.37bn (up 2% from USD 3.31bn in August 2025). Personal remittances (cash and in-kind, through banks and informal channels), monthly, US dollars (BSP). Philippines, BSP data. Basis date: 31 Aug 2026. Source: Philstar: Remittances rise 2% to $3.37 billion in August (2026-10-16, BSP data)
- Cash remittance growth, January–August 2026: 2.2%. Year-on-year change in cumulative January–August cash remittances in US dollars (BSP). Philippines, BSP data. Basis date: 31 Aug 2026. Source: Philstar: Remittances rise 2% to $3.37 billion in August (2026-10-16, BSP data)
Daily Tribune reports 2.3%; USD 23.424bn against USD 22.909bn (GMA News) is 2.2%.
- Personal remittances, January–August 2026: USD 26.1bn (up 2.3% from USD 25.51bn in January–August 2025). Personal remittances, cumulative January–August, US dollars (BSP). Philippines, BSP data. Basis date: 31 Aug 2026. Source: Philstar: Remittances rise 2% to $3.37 billion in August (2026-10-16, BSP data)
- United States share of cash remittances, January–August 2026: 39.8%. Share of cumulative January–August cash remittances recorded as coming from the United States (BSP). Philippines, BSP data. Basis date: 31 Aug 2026. Source: GMA News: Cash remittances rose to $3.035B in August 2026 — BSP data (2026-10-15)
BSP notes that funds recorded as from the United States were not necessarily earned there, because many remitting and correspondent banks are located in the US.
- BSP projected cash remittance growth, 2026: 2.7%. Projected year-on-year growth of cash remittances in US dollars, 2026 (BSP). Philippines, BSP projection. Basis date: 13 Oct 2026. Source: Daily Tribune: BSP sees BoP deficits in 2026 and 2027 (2026-10-14)
- Headline CPI inflation (PSA): 7.2% (up from 6.1% in August; matches April 2026). Year-on-year change in the consumer price index. Philippines, national. Basis date: 30 Sep 2026. Source: Inquirer: PH inflation climbs to 7.2% in September (2026-10-06)
Sources
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