Central Bank of the Philippines receives international remittances award

The Central Bank of the Philippines (CBP) has clinched an award from some the world's biggest intergovernmental institutions for its efforts to raise awareness and encourage better use of remittances in Asia's twelfth largest economy.

The CBP received the Global Forum on Remittances and Development's (GFRD) annual 'Public sector award' for an educational push aimed at bolstering the socioeconomic impact of money sent back from Filipinos overseas.

The GFRD is organised jointly by the World Bank, the European Commission, and the United Nations' International Fund for Agricultural Development (IFAD).

The forum seeks to provide an opportunity for stakeholders from the public and private sectors to "engage and identify opportunities for collaboration" and highlight the "vital" role that remittances play for the development of domestic financial markets.

The Philippines central bank was given the award for its 'Economic and Financial Learning Programme', its flagship financial inclusion initiative, part of which is dedicated to educating migrant workers and recipient families on financial issues.

Central bank on the road

The Philippines received $26.7 billion in remittances in 2013, according to the World Bank, behind only China and India in absolute terms. Worldwide, migrant workers sent back $436 billion last year, according to IFAD.

Most remittances are still used for basic goods such as food, clothing, shelter, medicine and education but up to 20% could be made available for savings, investments and other financial activities, the UN agency estimates.

The Filipino central bank has actively sought to raise public awareness about the potential of remittances in growing the country's economy through road shows and other events.

"By highlighting the importance of using remittances to build savings and directing these to productive investments in financial instruments and business ventures," the CBP said in a statement, "the [campaign] aims to reinforce the positive and beneficial effects of remittances for the socio-economic well-being of the overseas Filipinos and their families."

Governor Amando Tetangco added there are signs Filipinos are becoming financially savvier, saving and investing a larger share of the money sent back from overseas.

"The [CBP's] Consumer Expectation Survey in the second quarter this year indicated that there were more households that used part of their remittances for investments while allocation for savings increased to 49.7% from only 7.2% in the first quarter in 2007," Tetangco said.