THE Bangko Sentral ng Pilipinas (BSP) reported a sharp 16.6-percent increase in the number of remittance conduits that overseas Filipino workers (OFWs) now patronize around the world, helping make possible substantially lower remittance charges averaging only between 1 percent and 2.5 percent of the amount sent to beneficiaries in the Philippines.

According to the BSP, the network of remittance conduits patronized by more or less 10 million OFWs around the world total 4,351 as of end-June compared with only 3,370 last year.

The continued proliferation of remittance centers, correspondent banks and tie-ups and even bank branches that help make money transfers a safe and reliable transaction for overseas Filipinos helped bring remittance charges sharply down, as well.

According to BSP Governor Amando M. Tetangco Jr., remittance charges as high as 4.3 percent of the amount sent 10 years ago now average only between 1 percent and 2.5 percent.

With more remittance centers and conduits set to join the network in the coming months, the remittance charges can drop even lower, he said.

“The continued expansion in the number of bank branches, remittance centers and correspondent banks and tie-ups has resulted in the stronger presence of financial institutions abroad which, in turn, helped capture a bigger share of the global remittance market,” Tetangco said.

Data obtained from the BSP showed that in 2000 the cost of remitting money abroad to one’s bank account in the Philippines typically ranged from 1.5 percent to 2.5 percent.

At present, however, such charges range only from 1 percent to no more than 1.3 percent as competition among remittance units around the world heats up.

Sending money for credit in another local bank that used to cost 1.5 percent up to 3.8 percent now cost only 1 percent for the more efficient banks up to 2.3 percent of the amount sent.

So-called door-to-door delivery typically costing 3 percent to 3.8 percent in 2000 to recipients in Metro Manila now cost anywhere from 1.5 percent to 2.5 percent.

Door-to-door delivery to provincial points costing 3.5 percent up to 4.3 percent in 2000 now cost the same as Metro Manila deliveries.

Advice-and-pay transactions that cost 1.5 percent up to 3.5 percent are now charged only 1 percent to 2 percent.

Most remittances originate from the United States, Canada, Saudi Arabia, Japan, the United Kingdom, Singapore, the United Arab Emirates and Italy, based on BSP data.

The combined flows from these countries account for 81.7 percent of total remittances reported by the banks as at end-June this year, the BSP said.