Data Releases & Key Statements during the Month

Rwandan remittances rise 26.0% despite globalslump

“We were surprised that in 2009, compared to 2008, there was some significant increase. A deeper investigation is needed to understand the underlying factors behind this increase.”

Francois Kanimba
Governor
Rwanda's central bank

According to the central bank of Rwanda, remittance inflows in Rwanda increased 26.0% to $71.4 million for the first 5 months of 2009, from $56.8 recorded for the same period last year, in spite of the global economic downturn.

Rwanda's central bank Governor, Francois Kanimba said “We were surprised that in 2009, compared to 2008, there was some significant increase. A deeper investigation is needed to understand the underlying factors behind this increase.” He further indicated that money sent home to relatives in Rwanda in 2009 would likely total between $160-200 million.

Remittances to fall in developing nations, says World Bank

According to World Bank , remittance flows to developing countries is expected to decline by 7.3% to $304.0 billion in 2009. In 2008, remittance flows surged by 15.0% to $328.0 billion. Additionally, the bank forecasted that remittance flows to Latin America and Caribbean region, and Sub-Saharan Africa would fall by 6.9% and 8.3%, respectively, in 2009.

Lead economist, Development Prospects Group of the World Bank, Dilip Ratha said “Remittances provide a lifeline to many poor countries. Although they remain resilient, even a small decline of 7 or 10.0% can pose significant hardships to the people and to governments, especially those facing external f inancing gaps . Reducing remittance fees and developing innovative tools to leverage remittances for financial inclusion and capital market access should be a part of our response to the financial crisis.”

Remittances from OFWs hit record $1.48 billion in May

According to the Bangko Sentral ng Pilipinas (BSP), remittances sent home by overseas Filipino workers (OFWs) rose 3.70% YoY to hit a record monthly high of $1.48 billion in May. The central bank added that the total inflows in the first five months to May 2009 increased 2.80% YoY to $6.98 billion. Moreover, according to the BSP's official estimate, remittances for the whole of 2009 would match last year's $16.40 billion.

Governor, BSP, Amando M. Tetangco, Jr. said “The stream of remittances from OFWs continued to show signs of strength despite the lingering global economic fragilities, providing some basis for cautious optimism regarding steady remittance levels for 2009.”

“The stream of remittances from OFWs continued to show signs of strength despite the lingering global economic fragilities, providing some basis for cautious optimism regarding steady remittance levels for 2009.”

Amando M. Tetangco, Jr.
Governor, BSP

Remittances increased to $83.1 million for the first five months of 2009, says RBF

According to the Reserve Bank of Fiji (RBF), personal remittances have increased 14.9% YoY to $83.1 million for the first five months of 2009. The bank further added that personal remittance rose to $24.1 million in May, compared to a reading of $13.6 million recorded in the same month last year. Acting Deputy Governor, RBF, Barry Whiteside said “Before May, cumulative remittance were at the same level as the corresponding period in 2008.”

Remittances from UAE Filipino workers to fall by 6.7% in 2009

According to LandBank, a wholly- owned company of the Phi l ippine government, remittances sent by overseas Filipinos workers (OFWs) in the UAE would drop by 6.7% to $1.4 billion in 2009. Assistant Vice-President and Regional Head of remittances for Middle East and Africa, Global Banking Department of LandBank, Manny I. Inserto said “There will be a slight decrease in the remittances sent by OFWs because of the global crisis. This is a conservative estimate and is based on the number of banks (operating) in the UAE, OFW population and the volume of remittances. On average, each Filipino sends between $400-$500 per month.”

Pakistan's FY2008-09 remittances at record $7.8 billion

According to the State Bank of Pakistan, the country received a record $7.81 billion in remittances from overseas nationals in FY2008-09 that ended on 30 June 2009, the highest ever in a financial year, compared to $6.45 billion remitted in FY2007-08. The largest inflow of remittances during FY2008- 09 came from the US, with $1.74 billion, followed by the United Arab Emirates with $1.69 billion. In June 2009, the remittances increased 34.30% YoY to $735.17 million.