Guides

You've likely navigated various advice columns on sending money to the Philippines. Let's move past the basics. The Philippines has its own set of financial rules and a massive OFW population. Here’s your guide to understanding and optimising your remittances in Philippine Pesos (PHP) back home.

TL;DR:

• The Philippines operates on unique financial ground, heavily influenced by a large OFW population and specific regulations.
• Currency rates can vary widely, influenced by less-than-obvious factors.
• Digital platforms are becoming serious contenders against traditional banks. Each has its benefits and drawbacks.

The Remittance Ecosystem: A Closer Look

Remittances are not just a financial obligation; they're a key part of the Philippine economy, where PHP is the local currency. A significant OFW population, particularly in caregiving roles, fuels a highly competitive remittance industry.

Regulatory Nuances: What You Need to Know

In many countries like the UK, exchanging foreign currency back to the local currency (often called "buy-back") can be a costly affair, even at Forex bureaus. The rates are generally not in favour of the individual looking to exchange foreign currency to GBP. In stark contrast, the Philippines offers more favourable buy-back rates to Philippine Pesos (PHP), a unique trait in its financial landscape. This advantageous position arises from the high volume of remittances the country receives. Due to the sheer scale of incoming funds, local financial institutions and regulatory bodies provide more favourable conditions for converting currencies. This can be a significant advantage if you're looking to optimise the financial aspects of your remittances at both the sending and receiving ends.

Traditional Banking: Going Beyond the Obvious

Forex Rate Dynamics: Established banks like BDO and Metrobank may not offer the best Forex rates, especially when seasonal influences are at play. Expert Tip: Exercise caution during the Christmas season. Increased remittance inflows often lead to an appreciation of the Philippine Peso. A smarter strategy might be to send money before this peak.

The Rise of Digital Wallets: Worth Your Attention?

Competitive Edge: Lower overheads allow platforms like GCash to offer competitive fees and Forex rates. Insider Info: Promotional rates and bonuses are common but read the terms carefully. Use this competition to your advantage.

Action Plan: 

1. Data-Driven Comparison: Don’t solely depend on comparison websites. Keep a log of Forex rates and fees and use this information for better decision-making. Check out sources like reddit forums or sendrater.com for live rate comparisons 
2. Timing Your Transfers: If possible, send money when Forex rates are in your favour. This is where tracking data becomes invaluable.
3. Accuracy is Crucial: Always double or even triple-check all details, including bank account numbers and names. A single error can lead to costly delays.

Today's (22 Dec 2024) most favourable exchange rate for sending money from United Kingdom to Philippines in GBP is offered by WorldRemit at a rate of 74.02 PHP. Including all the fees the recipients will receive 7,402.00 PHP for your 100 GBP. For other currencies, please visit our rates page.