Peso hits record low as remittances grow

What happened

The Philippine peso closed at a new record low of P63.615 to the US dollar on Friday, 23 October, according to Bankers Association of the Philippines data reported by The Filipino Times. The previous record, P63.52, had been set only a day earlier, and the currency first moved past P63 on 15 October. A weaker peso means each dollar sent home turns into more pesos, which puts remittances, the money overseas Filipino workers (OFWs) send to their families, back in the spotlight.

The push for cheaper transfers

Khaleej Times reports that Finance Secretary Frederick Go has called for lower remittance fees and fair, transparent exchange rates so that OFWs can send more money home. The paper linked the peso's slide to volatile oil prices and tension in the Middle East, which it said had undercut the central bank's efforts to slow the decline. Around 10.7 million Filipinos live and work abroad, and their remittances are equal to about 8.7% of the economy, Khaleej Times said, citing the Commission on Filipino Overseas.

Remittances are still growing

Hans Leo Cacdac, Secretary of the Department of Migrant Workers, said this week that cash remittances are still growing by around 2.2% to 2.3% a year, slower than before but still positive, GMA News and The Filipino Times reported. He said at least 12,000 OFWs have been brought home since tensions in the Middle East escalated in late February, with hospitality and construction among the sectors hit. The central bank says December is usually the strongest month for remittances, according to Khaleej Times, as families prepare for Christmas.

The domestic worker behind the numbers

In Singapore, where "domestic worker" was among the top Google searches this weekend, The Straits Times published a series on debt among foreign domestic workers on 24 October. One article follows Michelle, 40, a Filipino domestic worker who supports her parents and her nine-year-old son in the Philippines. After a community savings pool went wrong and her mother fell ill, she borrowed from unlicensed moneylenders, and one lender turned up at her employer's home demanding payment. Her story shows how much depends on the money that leaves Singapore each month, and how costly it becomes when it has to be borrowed first.

What is a remittance, and why costs matter

For anyone asking what a remittance is: it is money that someone working in one country sends to family or others in another, usually through a bank, a money transfer app or a cash agent. How much arrives depends on the fee, the exchange rate margin and how long the transfer takes. The Filipino Times points out that the peso amount a family receives depends on bank charges, transfer fees and exchange rate margins, not just the headline rate. That is why calls for cheaper international money transfer come back whenever the peso weakens.

What to watch next

The next questions are whether the peso keeps falling, whether Manila turns its call for lower fees into concrete measures, and how strong the December peak turns out to be. The Straits Times series also describes community support sessions in Singapore for migrant workers struggling with debt, a reminder that the cost of sending money is only one part of the picture.

What it means for Odix Pay users

If you send money to family abroad, compare the full cost before you confirm, not just the exchange rate. With Odix Pay money transfer you can send money to bank accounts abroad, and the fee and exchange rate are shown in the app before you confirm. To receive payments in your own name, you can also use a personal EUR IBAN. Which countries and currencies you can send to depends on your country, and fees are shown in the app. More stories in the Odix Pay newsroom.

Related guides — How to send money abroad