Remittances to Philippines dip to 9-month low; Middle East conflict may affect rest of 2026

Cash remittances from Filipinos abroad fell to a nine-month low in February, the Philippine central bank reported.

While remittances coursed through banks rose to $3.02 billion in January this year, it fell by 7.7 per cent to $2.79 billion in February, the Bangko Sentral ng Pilipinas (BSP) revealed.

It was the weakest level of remittances through bank transactions since the $2.66 billion cash inflow in May 2025.

Land-based overseas Filipino workers sent home $2.25 billion in February, while sea-based workers remitted $530 million, BSP said.

The bank explained the dip may be attributed to Filipinos abroad having already sent more funds to their families during the Christmas and New Year holidays in December and January.

“The United States remained the top source of cash remittances to the Philippines in January and February 2026 – accounting for 40 per cent of the total – followed by Singapore and Saudi Arabia,” the BSP said.

It was followed by Singapore (7.6%), Saudi Arabia (6.1%), Japan (5.3%), the United Kingdom (4.7%), the United Arab Emirates (4.2%), Canada (3.1%), Taiwan (3%), Qatar (2.9%), and Hong Kong (2.7%).

Meanwhile, personal remittances – coursed through banks, online financial applications, remittance centers, and informal channels as well as in-kind items – rose by 2.6 per cent to $3.1 billion in February from $3.02 billion a year ago, BSP reported.

In the January to February, personal remittances grew by 3.1 per cent to $6.46 billion from $6.27 billion a year earlier.

The Philippine Department of Economy, Planning and Development (DepDEV), however, expressed fears that the hostilities in the Middle East may push OFW remittances to lower levels for the rest of 2026.

DepDEV secretary Arsenio Balisacan said OFW remittances may fall by as much as P167.45 billion if the US-Israel-Iran war leads to massive job losses and forced repatriations.

Remittances by the estimated 10 to 15 million Filipinos living and working abroad contribute to as much as 10 per cent of the Philippines gross domestic product and is the country’s main source of foreign exchange.