April 16 ------ The Philippine peso appreciated against its US counterpart on Thursday, following the release of February remittance data. The local currency gained 5.9 centavos to close at P48.44:$1 from Wednesday's finish of P48.59:$1. The central bank earlier on Thursday reported cash remittances — money transfers coursed through banks — up 5.1% to $2.477 billion in February from $2.358 billion the same month in 2020. Meanwhile, personal remittances — the sum of transfers sent in cash or in-kind via informal channels — grew 5.3% to $2.761 billion from $2.623 billion.
"Expectations for modest positive growth for OF remittances will continue to be supportive of the Peso in the near term, especially with the economic recession weighing on corporate demand for the dollar," Nicholas Mapa, senior economist at the ING Bank Manila, said in an emailed commentary. "In 2021, we expect remittance flows to adequately cover the more modest trade deficit, a development that should help lend appreciation pressure to the PHP in the near term," he added. Mapa noted, however, that impact of remittances on domestic consumption will likely be muted with the peso-equivalent of remittances actually down 3.6% for the year.
Source: gmanetwork.com