Remittance fees dropping to 5% by 2016

By Apples Jalandoni

Donna Francisco’s aunt, who is working in the United States, helps put her though college. But with every remittance her aunt sends to the Philippines, she is also paying an additional cost for the remittance fee.

“Pinag-aral po niya ang mga kapatid ko,” said Donna Francisco. “Ang anak nniya. Ako po, last na pinapag-aral.”

An official of the Australian Embassy in Manila says Overseas Filipino Workers will benefit from the decision of G20 countries to cut remittance fees.

G20 countries include the United States, Saudi Arabia, and the United Kingdom, where many Filipinos work. The decision was finalized during the recently concluded G20 Summit in Australia.

“With lower remittance,” said Andrew Hodges, first secretary of the Australian Embassy in Manila, “money can go to pockets of Filipino families.”

The remittance fee is currently at eight percent of the total amount of money being sent. G20 countries targets to reduce it to five.

Each country will have to make its own adjustments and policy changes to implement the reduction – they have until 2016 to comply.

The Bangko Sentral Ng Pilipinas says this is good news for OFW’s and their families.

“More savings for OFW’s,” said Director of Bangko Sentral Ng Pilipinas, Rosabel Guerrero. “More remittances na maipapadala.”

Based on BSP data, remittances from Jan. to Sept. 2014 reached more than $17 billion US dollars – six percent higher from the same period last year. Bulk of the remittances is expected to come in during the holiday season.

 

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  • Mario
    20 November 2014 at 9:52 pm - Reply

    To all Pinoys in PH and illegal alien in the US,Hurry-up, visit your local Canadian, United Kingdom(Brithis),Australian Embassy, for jobs,apply now, you might qualify. You have nothing to loose, Pinoys are priority, as long as you are Christian. This countries are deporting their Muslim citizens,residence,being violent(most of them are member of ISIS) and lazy(90% depend on welfare), mass deportation is big time,this countries need replacement ASAP.

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