Remittances for June 2019

Private transfers fall in June


  TOP$ millions
  Month Ended Year Ended  
  Jun 19 May 19 Apr 19 Mar 19 Jun 19 Jun 18 Shares
of totals*

Remittance Receipts 27.0 34.9 27.5 27.3 346.6 346.1 100.0
Private Transfers 24.0 30.9 24.1 24.1 312.0 312.8 90.0
Employee Compensation 2.3 2.8 2.4 2.2 23.9 22.3 6.9
Private Capital Transfer 0.6 1.0 0.8 1.0 9.1 9.6 2.6
Social Benefits 0.1 0.1 0.2 0.1 1.6 1.4 0.5

*Based on year ended remittance receipts numbers
Note: Numbers may not add up precisely to the totals due to rounding errors.
Source: National Reserve Bank of Tonga | Banks | Foreign Exchange Dealers

The total remittance receipts for June 2019 declined to $27.0 million following the seasonal hike in May of each year. This was driven by lower receipts for private transfer, compensation of employees, and social benefits recorded over the month. The share of total remittances in the total OET receipts dropped to 26.8%, compared to 45.7% in May 2019 and was attributed to the boost in the total Overseas Exchange Transaction (OET) receipts in June on the receipt of official grants. Annually, total remittance receipts slightly rose by 0.2% to $346.6 million. This was due to a rise in compensation of employees and social benefits which outweighed the decline in family support and private capital transfers.

Remittances received in all major trading currencies declined over the month coinciding with the fall in total remittance receipts. The strengthening of the New Zealand Dollar (NZD) and the Australian Dollar (AUD) against the TOP may have supported the amount of remittances received in these currencies. However, the US Dollar (USD) remained the top currency for remittance receipts accounting for 41.1% of total remittances. Receipts in NZD and AUD followed with 27.7% and 24.4%, respectively.

Foreign Exchange Dealers (FEDs) continued to be the preferred channel for receipt of remittances as the share of total remittances received via FEDs in June 2019 was 83.3%, and the remaining 16.7% were received via the banks. The general public preference for sending and receiving money via FEDs is due to accessibility and faster services.

Private Transfers

The total private transfers fell by $6.9 million (22.3%) to $24.0 million, due mainly to lower receipts for family support following the hike in the month of May 2019. Compared to the April and March levels, private transfers are somewhat similar at $24 million. Nonetheless, private transfer receipts are mostly for family support and gifts and the most significant component of total remittance receipts at 88.9% and 23.8% of the total OET receipts. In year ended terms, the total receipts of private transfers slightly declined by 0.2% ($0.7 million) to $312.0 million, due mainly to fewer receipts for family support.

Employee Compensation1

Over the month, the total receipts from compensation of employees also slightly declined by $0.6 million (20.4%) to $2.3 million and accounted for 6.9% of the total remittances received. This was due to a $0.9 million decline in receipts from seasonal workers abroad, which outweighed a $0.3 million (30.8%) rise in receipts from the other wages & salaries.

In year ended terms, total employee compensation rose by $1.6 million (7.1%) to $23.9 million. Other wages and salaries accounted for 51.0% ($12.2) of the employee compensation receipts over the year, and the remaining 49.0% ($11.7 million) was from RSE/SWP workers. New Zealand RSE workers contributed the most to the seasonal workers’ receipts of $8.9 million, while the seasonal workers from Australia only contributed $2.8 million.

Private capital transfer & Social Benefits

Private capital receipts for building and renovation of houses decreased by $0.4 million over the month. Receipts for social benefits remained constant at $0.1 million in June 2019. Over the month, private capital transfers and social benefits receipts accounted for 2.2% and 0.5%, of the total remittance receipts. Over the year, the social benefits receipts rose by $0.2 million while the private capital transfers declined by $0.5 million.

Outlook

Remittance receipts are expected to remain at high levels in the upcoming months due to annual events such as King Tupou VI’s birthday, church conferences, Heilala festivities, Agricultural show, school anniversaries’ celebration and other annual events. 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 2019


pdfIcon May
Released on 1 October 2019 | 156 KB
pdfIcon June
Released on 17 October 2019 | 241 KB

pdfIcon March
Released on 3 July 2019 | 185 KB
pdfIcon April
Released on 29 July 2019 | 247 KB

pdfIcon January
Released on 18 June 2019 | 185 KB
pdfIcon February
Released on 21 June 2019 | 205 KB

2018


pdfIcon November
Released on 5 April 2019 | 210 KB
pdfIcon December
Released on 1 May 2019 | 210 KB

pdfIcon September
Released on 7 February 2019 | 210 KB
pdfIcon September
Released on 7 February 2019 | 210 KB

pdfIcon July
Released on 23 November 2018 | 204 KB
pdfIcon August
Released on 23 November 2018 | 388 KB

pdfIcon May
Released on 20 August 2018 | 212 KB
pdfIcon June
Released on 10 October 2018 | 189 KB 

pdfIcon March
Released on 16 May 2018 | 220 KB
pdfIcon April
Released on 20 August 2018 | 192 KB

pdfIcon January
Released on 16 May 2018 | 220 KB
pdfIcon February
Released on 31 May 2018 | 200 KB

2017


pdfIcon December
Released on 22 March 2018 | 430 KB
pdfIcon November
Released on 2 February 2018 | 208 KB

pdfIcon October
Released on 25 January 2018 | 204 KB
pdfIcon September
Released on 27 December 2017 | 457 KB

pdfIcon August
Released on 27 November 2017 | 464 KB
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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