Remittances

May 2018

Released on 20 August 2018 | Download the complete release |  212 KB

Celebrations of family month pushed remittances to a new high level

May of every year is usually known as the month for family when the country celebrates the importance of family members such as the Children’s White Sunday as well as the remembrance of Mothers’ Day and Fathers’ Day. These events always triggered a peak in total remittance receipts every year and a new high level of $35.1 million was reached in May 18, a $9.0 million (34.3%) rise from last month. All categories of remittances rose which supported the overall monthly rise.

Over the month, total remittance receipts accounted for almost half (49.8%) of the total Overseas Exchange Transactions (OET) receipts compared to 44.5% in the previous month. During the month, the continous favourable exchange rates of US dollar (USD) against Tongan Pa’anga (TOP) caused the USD to remain the top currency for remittance receipts. At the end of the month, 33.3% of receipts were in USD, followed by a 32.9% and 28.7% share of total remittances being receipts in New Zealand dollar (NZD) and Australian dollar (AUD) respectively, among others.

Over the year, total remittances continued to rise by $37.2 million (12.2%) to a new high record of $342.5 million, supported by the events and occasions that took place during the year as well as continuous higher receipts for family support and from seasonal workers abroad.

Foreign Exchange Dealers (FEDs) continued to be the preferred channel for receiving of remittances. A 87.0% share of total remittances were received via FEDs in May 2018 compared to a 85.0% share recorded last month and 89.5% in May 2017. This reflects the convenience of sending money via FEDs compared to banks, as FEDs have more access points and their services are much quicker.

Private Transfers

Total private transfers rose significantly by $8.4 million (36.1%) to $31.5 million over the month, due mainly to higher receipts for family support for the family month of May. The total private transfer receipts in USD increased the most by $2.9 million followed by the receipts in AUD and NZD with a rise of $2.8 million and $2.6 million respectively over the month. Receipts of private transfers continued to be the main purpose of remittances which accounted for 89.8% of total remittance receipts and 44.7% of total OET receipts over the month.

In year ended terms, the total receipts of private transfers continued to rise by $27.6million (9.7%) to $342.5 million, due mainly to receipt for family supports.

Employee Compensation¹

The total receipts for compensation of employees slightly rose by $0.2 million (8.8%) to $2.5 million, which accounted for 7.0% of the total remittances received over the month. The rise in receipts for compensation of employees was driven mainly by the receipts from seasonal workers abroad and wages & salaries paid from international organisations. This reflects workers sending money to their family in support of celebrating special Sundays. Similarly, the receipts for compensation of employees also increased by $3.6 million (21.9%) over the year, also due to an increased in the receipts from seasonal workers abroad during the year.

Private capital transfer & Social Benefits

The total receipts for private capital transfers and social benefits both increased by $0.2 million over the month. The increase in total private capital transfers receipts was due mainly to a rise in receipts for purchasing of construction materials for building and renovation of houses relecting the continous support from families and relatives abroad for the recovery after tropical cyclone GITA that hit the country in February 2018. In addition, total private capital transfers and social benefits receipts accounted for 2.2% and 0.9% respectively of the total remittance receipts in May 2018. Over the year, private capital transfers rose by $5.4 million due to project and working capital funds as well as funds for constructions materials received during the year. The receipts for social benefits also rose by $0.3 million.

Outlook

Remittance receipts are anticipated to remain at high levels in the upcoming months as annual events such as church conferences and Heilala festivities approach in addition to the school anniversaries’ celebration. The Reserve Bank will continue to closely monitor the remittance receipts given it is the largest source of foreign exchange inflow for the economy.

1 - Employee compensation is the sum of wages and salaries from the seasonal workers abroad, Tongan residents working short term overseas, and resident employees serving foreign organizations.

Remittances Releases

• Remittances Releases for 2018
• 2017
• 2016
• 2015

Remittances Releases for 2018

	May Released on 20 August 2018 | 212 KB
	March Released on 16 May 2018 | 220 KB		April Released on 20 August 2018 | 192 KB
	January Released on 16 May 2018 | 220 KB		February Released on 31 May 2018 | 200 KB

2017

	December Released on 22 March 2018 | 430 KB		November Released on 2 February 2018 | 208 KB
	October Released on 25 January 2018 | 204 KB		September Released on 27 December 2017 | 457 KB
	August Released on 27 November 2017 | 464 KB		July Released on 16 September 2017 | 214 KB
	June Released on 16 September 2017 | 205 KB		May Released on 15 August 2017 | 469 KB
	April Released on 10 July 2017 | 447 KB		March Released on 29 June 2017 | 450 KB
	February Released on 2 June 2017 | 488 KB		January Released on 2 June 2016 | 490 KB

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2016

	December Released on 9 May 2017 | 451 KB		November Released on 9 May 2017 | 534 KB
	October Released on 11 January 2017 | 438 KB		September Released on 11 January 2017 | 438 KB
	August Released on 25 November 2016 | 444 KB		July Released on 9 November 2016 | 441 KB
	June Released on 5 September 2016 | 227 KB		May Released on 28 July 2016 | 227 KB
	April Released on 15 July 2016 | 205 KB		March Released on 3 June 2016 | 208 KB
	February Released on 2 June 2016 | 208 KB		January Released on 4 May 2016 | 208 KB

2015

	December Released on 4 May 2016 | 213 KB		November Released on 4 May 2016 | 211 KB
	October Released on 1 February 2016 | 471 KB		September Released on 4 January 2016 | 413 KB
	August Released on 4 January 2016 | 429 KB		July Released on 22 December 2015 | 440 KB
	June Released on 9 October 2015 | 255 KB		May Released on 23 September 2015 | 296 KB
	April Released on 22 July 2015 | 224 KB