Remittances

July 2017


Released on 16 October 2017 | Download the complete release | pdfIcon 214 KB


* TOP $m Jul 17
Jun 17
May 17
Apr 17

Remittance Receipts
25.46 26.54 28.50 21.52
Private Transfers
23.78 24.46 26.67 20.13
Employee Compensation 1.25 1.42 1.16 0.91
Private Capital Transfer 0.40 0.50 0.59 0.34
Social Benefits 0.04 0.16 0.08 0.14

* Month-ended

Remittances continued to remain high despite the slight decrease

Total remittance receipts for the month of July 2017 decreased to $25.6 million, 4.1% lower than the previous month. All categories of remittances declined over the month with private transfer receipts decreasing the most. However, the Heilala festivities and other scheduled events including the Agricultural show during the month assist in maintaining the high level of remittances. In year ended terms, total remittance receipts rose by $34.2 million (13.5%) to $287.5 million due mainly to rise in private transfer receipts. The private transfers’ accounts for around 93% of the total remittances receipt.

The United States Dollar (USD) continued to be the dominant currency during the month, representing 38% of the total remittance receipts. Australian Dollar (AUD) and New Zealand Dollar (NZD) receipts followed with 35% and 22% respectively. Over the month, remittances received in NZD declined the most by $0.9 million and also USD receipts decreased by $0.1 million. On the other hand, remittances received in AUD rose by $0.04 million.

Foreign Exchange Dealers (FEDs) continued to be the preferred channel for receiving of remittances. In July 2017, around 88% of the total remittance receipts were received via FEDs compared to 87% in the previous month and 88% in July 2016.

Private Transfers

Private transfers over the month accounted for around 93% of the total remittance receipts and 38% of the total OET receipts. Over the month, private transfers fell by $0.7 million (2.8%) to $23.8 million, particularly lower receipts of family support from friends and families abroad. Family support receipts via FEDs in the major currencies fell, with the NZD declining the most by $0.6 million. In addition to USD and AUD receipts followed by $0.3 million and $0.05 million respectively.

In year ended terms, private transfers rose by around 15% ($35.6 million), largely owing to higher receipts for family support.

Employee Compensation1

Employee compensation fell by $0.2 million (12.1%) over the month and accounted for around 5% of the total remittances receipts. Receipts from other wages & salaries fell over the month by $0.2 million whereas the receipts from the Recognised Seasonal Employer (RSE) Scheme workers rose by $0.02 million.

Similarly in the 12-month period to July 2017, total compensation of employees declined by $3.1 million mainly due to lower receipts from RSE workers. Around 70% of the total compensation was for other wages and salaries whereas the remaining 32% were from RSE workers.

Private capital transfers & Social benefits

Private transfers for capital expenditures and social benefits received by individuals both declined by $0.1 million each over the month. Both categories of remittances only accounted for 2% of the total remittances receipt. There were lower.

In year ended terms, private capital transfers rose by $2.7 million, mainly due to higher receipts by households for house construction and renovation related activities compared to the previous year. Social benefits on the other hand, fell by $1.0 million over the period.

Outlook

Remittance receipts are anticipated to slow down in the upcoming months as economic activities return to its normal pace. However, scheduled events later on in the year such as the churches annual offerings (misinale) and Christmas may sustain the level of remittances. 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 Recognised Seasonal Employer (RSE) program, Tongan residents working short term overseas, and resident employees serving foreign organizations.


Remittances Releases

Remittances Releases for 2017


pdfIcon July
Released on 16 September 2017 | 214 KB
   

pdfIcon June
Released on 16 September 2017 | 205 KB
pdfIcon May
Released on 15 August 2017 | 469 KB

pdfIcon April
Released on 10 July 2017 | 447 KB
pdfIcon March
Released on 29 June 2017 | 450 KB

pdfIcon February
Released on 2 June 2017 | 488 KB
pdfIcon January
Released on 2 June 2016 | 490 KB

2016


pdfIcon December
Released on 9 May 2017 | 451 KB
pdfIcon November
Released on 9 May 2017 | 534 KB

pdfIcon October
Released on 11 January 2017 | 438 KB
pdfIcon September
Released on 11 January 2017 | 438 KB

pdfIcon August
Released on 25 November 2016 | 444 KB
pdfIcon July
Released on 9 November 2016 | 441 KB

pdfIcon June
Released on 5 September 2016 | 227 KB
pdfIcon May
Released on 28 July 2016 | 227 KB

pdfIcon April
Released on 15 July 2016 | 205 KB
pdfIcon March
Released on 3 June 2016 | 208 KB

pdfIcon February
Released on 2 June 2016 | 208 KB
pdfIcon January
Released on 4 May 2016 | 208 KB

2015


pdfIcon December
Released on 4 May 2016 | 213 KB
pdfIcon November
Released on 4 May 2016 | 211 KB

pdfIcon October
Released on 1 February 2016 | 471 KB
pdfIcon September
Released on 4 January 2016 | 413 KB

pdfIcon August
Released on 4 January 2016 | 429 KB
pdfIcon July
Released on 22 December 2015 | 440 KB

pdfIcon June
Released on 9 October 2015 | 255 KB
pdfIcon May
Released on 23 September 2015 | 296 KB

pdfIcon April
Released on 22 July 2015 | 224 KB
   

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