Remittances from the UAE to the Philippines rose last month in the wake of Typhoon Haiyan, leading to hopes for a recovery in the Philippine peso.
UAE currency exchanges yesterday said Filipino expatriates sent more money than usual to their families and aid organisations after the devastating natural disaster.
Promoth Manghat, the vice president of global operations at UAE Exchange, said there had been a 2 to 3 to per cent increase in remittances to the South East Asian country since October.
Although some of that increase was seasonal, coming after the Eid Al Adha holiday in October, much of it was attributable to money sent in the typhoon's aftermath, Mr Manghat said.
Leonardo Bello, the manager of Al Fardan Exchange's branch in Al Wahda Mall, said remittances to the Philippines grew 10 to 15 per cent in the week following the storm, before returning to their usual levels.
The increase in remittances from the UAE and elsewhere, along with an influx of foreign aid, is expected to bolster the peso after the typhoon caused heavy economic losses last month.
Before the storm, the currency had been strengthening, recovering from a three-year low reached in August amid the country's rapid pace of economic growth – the fastest in South Dast Asia.
The influx of funds is also expected to dampen the effect of the withdrawal of some US$43 million from Filipino stocks by global funds this month, partly in anticipation of a potential tapering of monetary stimulus in the United States.
Money sent home by Filipino workers accounts for about 10 per cent of the country's economy, according to the World Bank.
Mr Manghat of UAE Exchange said the level of remittances to the Philippines was likely to increase by 8 to 10 per cent this month because of the Christmas and New Year festivities.
Typhoon Haiyan, one of the strongest tropical cyclones in history, made landfall in the Philippines on November 8. It claimed nearly 6,000 lives, while some 1,800 people are still reported as missing.
Earlier this month, the World Bank cut the country's growth forecast for this year to 6.9 per cent from 7 per cent because of the typhoon's impact.
The Philippines is the third largest recipient of overseas remittances behind India and China, according to the World Bank.
Remittances to the Philippines are forecast to reach $26bn this year, according to the World Bank's Migration and Remittance Flows report, published in October.
* Additional reporting by Bloomberg News
jeverington@thenational.ae
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Support for Philippine peso as UAE remittances rise
UAE currency exchanges say Filipino expatriates sent more money than usual to their families and aid organisations after the devastating natural disaster.
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