PERSONAL remittances from overseas Filipino workers (OFW) hit $2.88 billion in May, the Bangko Sentral ng Pilipinas (BSP) reported on Monday, 3.7 percent higher compared to the year-earlier $2.78 billion.

The amount was also slightly higher, by 0.8 percent, than the $2.86 billion posted a month earlier, preliminary central bank data showed.

"The increase in personal remittances in May 2024 was due to remittances from land-based workers with work contracts of one year or more and sea- and land-based workers with work contracts of less than one year," the BSP said in a statement.

Money sent home via banks alone totaled $2.58 billion, 3.6 percent up from the $2.49 billion recorded in May last year and also higher than the $2.56 billion posted a month earlier.

"The expansion in cash remittances in May 2024 was due to growth in receipts from both land- and sea-based workers," the central bank said.

Year-on-year growth for both personal and cash remittances was the highest since December last year, at 3.9 percent and 3.8 percent, respectively.

Year to date, meanwhile, personal remittances were 3.0 percent higher at $14.89 billion from $14.46 billion a year earlier, while cash remittances also rose 3.0 percent to $13.36 billion from $12.98 billion in the January to May 2023 period.

Cash remittance growth for the five-month period was mainly due to flows from the United States, Saudi Arabia and Singapore, the BSP said.

By country source, the US again accounted for the biggest share (40.9 percent), followed by Singapore (7.2 percent), Saudi Arabia (6.1 percent), Japan (5.1 percent), and the United Kingdom (4.7 percent).

Rounding out the top ten were the United Arab Emirates (4.0 percent), Canada (3.4 percent), Qatar (2.8 percent), South Korea (2.8 percent), and Taiwan (2.7 percent).

Security Bank Corp. chief economist Robert Dan Roces attributed the month's gain to rising OFW wages and more money being sent home.

The peso's weakness — the currency has been trading at the P58:$1 level for almost two months now — has also boosted the value of OFW remittances, he added.

"[F]avorable exchange rates incentivize sending more money back as it translates to a bigger bump in Philippine pesos received," Roces continued.

"[The] trend is a positive sign for the Philippine economy, as remittances remain a crucial source of income for many families and contribute significantly to private demand."