Introduction
Have you ever heard of the term “Bagong Bayani”? These are the exact words that former president Corazon Aquino used to refer to the Overseas Filipino Workers (OFW), recognizing their exceptional impact on their families, community, nation, and environment. Even up to this day, OFWs prove their modern-day heroism by not only providing for their families but also supporting the nation’s growth through remittances.
By sending money from abroad, OFWs help support the income of their families back home, enabling them to afford necessities like food, education, and healthcare. It even serves as the safety net for insufficient government support, especially in developing countries like the Philippines.
In this blog, Cebuana Lhuillier will shed light on the impact made by the sacrifices of OFWs. We will guide you in understanding the value of online money transfers to the Philippines in both the macro- and micro-economic contexts.
Why People Opt for International Online Money Transfers
OFWs have plenty of options when it comes to worldwide money transfers. However, most of them prefer online remittance for its benefits and convenience. Learn more about the advantages of transferring international money online.
Faster Transaction Times
Instead of waiting 2 to 3 business days for your transfer to go through, you only need to wait a few hours for your remittance to arrive where it needs to be. Remittance centers like Cebuana Lhuillier conveniently process your international transactions in less than an hour. We understand your desire to provide for your family during emergencies, so we make sure that there is no delay in your remittance.
Added Security Measures
Cebuana Lhuillier, along with their international partners, keeps your online cash transfers secure through encryption. Every transaction data is protected with a unique code that hides your personal details from cyber criminals. In addition to this, we also implement organizational, procedural, contractual, technical, and physical security measures to prevent data tampering.
Lower Fees
The global average of remittance fees can cost up to 6.25% of the amount sent. However, that is not the case in the Philippines. As a country that relies on international money transfers, Philippine-based remittance centers like Cebuana Lhuillier offer a lower fee to encourage more transactions. You can enjoy rates that are less than 5% of the money you send.
Remittances From Abroad: How They Support Households
Through online money transfers to the Philippines, a household can increase its human capital accumulation. Remittances allow families to gain more money for investments and savings while also stabilizing their ability to purchase goods and services.
In addition to bolstering purchasing power, remittances are also known to create a positive impact on the education of children left by OFWs. These kids can improve their knowledge through formal education and reduce their hours in the labor market since they have stable support backing them up with their needs.
Another way remittances can support households is through capital investments. Remittances can ease the credit restraints faced by a household and give families access to business investments, helping households further elevate their way of living.
Bagong Bayani: How International Remittances Affect the Economy
For a consumption-dependent country like the Philippines, remittances sent by OFWs are considered the lifeblood of the economy. Here are some of the ways that remittances positively affect our economic state:
Economic Growth
Remittances are known to drive economic growth by helping households increase their purchasing power and enabling families to afford different goods and services offered by local businesses. This creates a more stable flow of money within the country while also sustaining businesses enough to prevent them from closing down.
Additionally, worldwide money transfers can positively impact a family’s investment and access to credit. By relaxing credit restraints, remittances can give Filipinos the confidence to self-employ and even create employment opportunities for those who are struggling to land a job.
Forex Reserves
The foreign exchange (Forex) reserve pertains to the foreign currency held by the Bangko Sentral ng Pilipinas. Remittances can help increase this reserve by exchanging foreign money for the Philippine peso.
The higher the forex reserve is, the more power a country has to maintain international stability and control the trading power of its local currency. Additionally, forex reserves can also help meet the country’s financial obligations, which include paying our country’s debt to the World Bank and financing imports.
Government Revenue
The Philippine government earns its revenue through tax and non-tax sources, local and foreign loans, and withdrawals from cash balances. Through online money transfers to the Philippines, OFWs help sustain their families’ ability to pay taxes for domestic goods and services, properties, and international trade and exchange.
The Role of Financial Institutions Like Cebuana Lhuillier
Financial institutions like Cebuana Lhuillier act as the facilitator of your exchange. Through our eCebuana app, we create opportunities for Filipinos to send and receive money wherever they are.
If you are wondering how to wire money online through Cebuana Lhuillier, don’t worry because it’s easy. For online money transfers to the Philippines, you can use the online options of our international remittance partners. Simply fill out the necessary forms and send the reference number of your transaction to your intended receiver.
The receiver in the Philippines can access your remittance through the eCebuana app. All they have to do is click on the receive money service, choose the international remittance partner you selected, and input the reference number of your transaction. The money will automatically be credited to their Cebuana Lhuillier account.
Conclusion
Your sacrifices as an OFW create an impact much more significant than you can imagine. To your family, your remittance can be the difference between a comfortable life and mere subsistence. To our country, your support stabilizes our economy and creates a path for a better Philippines.
To support you in providing for your family and the nation, Cebuana Lhuillier is here to offer you the most convenient and affordable remittance services through the eCebuana app. Send money to the Philippines today with Cebuana, your reliable remittance partner!