Headline of the Day: Weak Philippine peso NOT Equal to Remittances Growth in July

The headline above from the Business World Online.

So whatever happened to the mainstream mantra that the weak peso will not only amplify OFW spending but also encourage remittance flows?

Well just a reminder that USD dollar based revenues from OFWs and BPOs are not impregnable.

Revenues of both OFWs and BPOs are SOURCED externally. This means OFW remittances depend on the INCOME of foreign employers. BPOs revenues depend on the INCOME of foreign based principals. This likewise means that the economic, social and political CONDITIONS of the nations serving as HOST to foreign employers and foreign principals essentially determine indirectly the REVENUES of OFWs and BPOs.

Consequently, this means that when the world enters a recession, OFW remittances and BPO activities will most likely get affected too. So OFWs and BPOs are not talismans. They are as vulnerable to any frailties from human action.