Remittances from OFWs in UAE drop 40.3% in Nov

Apparently because of the boycott called by overseas Filipino workers in the first week of November, remittances from the United Arab Emirates dropped by 40.3 percent to $27.85 million, from $46.7 million in November. Quoting a source from the Dubai foreign exchange center, Khaleej Times reported on Sunday that the decrease in the month remittances was unusual considering that it was already the start of preparations for the Christmas holidays. The report said the drop was also because of the continued appreciation of the dirham against the US dollars. OFWs from the Middle East have called a remittance boycott on November 1 and 2 as a sign of protest to what they considered as government’s inability to control the weakening of the foreign currency against the peso. They argued that the value of the money they send home had practically been reduced by 20 percent as the peso steadily gained against the dollar from above P50 level in the first quarter of 2007 to the P40-42 level in November. Remittances from overseas Filipinos coursed through banks rose slower at 3.8 percent in November to $1.2 billion, the Bangko Sentral ng Pilipinas reported last Tuesday. Earnings sent home for the first 11 months of 2007 reached $13.1 billion, 14.1 percent higher than the $11.4 billion registered in the same period in 2006. Bulk of remittance flows came from the United States, United Kingdom, Italy, United Arab Emirates, Saudi Arabia, Canada, Singapore, Japan, and Hong Kong. From the UAE, the remittances from January to November rose 32.9 percent to $502 million from $378 million during the same period in 2006. OFWs in the UAE are estimated at 250,000, making it one of the biggest hosts of Filipino workers. Worldwide, the government estimates the number of OFWs at more than eight million, plus at least four million immigrants. Seventy percent of overseas Filipinos course their remittances through banks and the remaining 25 percent through informal channels like the door-to-door delivery system. The peso-dollar exchange rate, which closed 2007 as Asia's strongest currency following a gain of 19 per cent, has been eroded because of the weak dollar. Valued at 11 to the UAE dirham on Thursday, the peso recorded its eight-year high of 10.92 against the UAE currency on Monday, based on the respective dollar-peso exchange rate of 40.65 and 40.20, Khaleej Times reported. When sending money to the Philippines, an OFW's dirham is converted into the dollar and which the receiving banks convert into the peso, with both parties charging a respective amount known as "front-end" and "back-end" fees. The foreign exchange centers in the UAE maintain dollar accounts in Philippine banks. BSP said that monthly remittances from Kuwait had the biggest drop in the Middle East at 54.5 per cent, or Dh20.6 million ($5.6 million) in November from Dh45 million ($12.24 million) in October. The remittances from January to November jumped 51 per cent to Dh584.5 million ($159.12 million) from Dh387.5 million ($105.5 million). OFWs in Saudi Arabia again topped the Middle East, sending home Dh276 million ($75.1 million) in November, or a decline of 18.6 per cent from Dh338.7 million ($92.2 million) in October. These remittances climbed 7.23 per cent to Dh4 billion ($1.1 billion) for the 11-month period from Dh3.6 billion ($991.2 million) a year ago. Monthly remittances from the Middle East, which includes only the UAE, Saudi Arabia and Kuwait in the BSP list, dropped 30 per cent to Dh465.8 million ($126.8 million) from Dh663.8 million ($180.7 million). But these rose 21 per cent to Dh7.35 billion ($2 billion) from Dh6.24 billion ($1.7 billion) for the 11-month period. - GMANews.TV