Remittances for April 2019

Steady flow of remittance in April

A slight rise in employees compensation by $0.2 million (7.7%) over the month of April 2019 drove the total remittances higher by $0.2 million. Social benefits rose by $0.1 million but was offset by a decline in private capital transfers. Private transfers for family support remained at $24.1 million similar to that of last month. Total remittances represented 44.8% of the total overseas exchange transaction (OET) receipts during the month compared to a 47.3% in March 2019, reflecting an overall rise in total OET receipts.

In year ended terms, total remittance receipts were 3.1% higher than the previous year, at $350.8 million. This was due to a rise in all remittance related receipts supported by family support, major events, and other social occasions which took place throughout the year. The consistent increase in receipts for family support and receipts from seasonal workers abroad continued to be key drivers in the yearly rise.

During April 2019, the US dollar (USD) remained the top currency for remittance receipts accounting for 40.8% of total remittance. Receipts in New Zealand dollar (NZD) and Australian dollar (AUD) followed with 28.7% and 24.7% respectively. However, remittance received in USD declined by $0.4 million (3.5%) followed by a $0.3 million (4.9%) in AUD receipts. The weaker AUD may have contributed to the fall in AUD receipts. Nonetheless, receipts in NZD rose by $0.6 million (8.8%).

Foreign Exchange Dealers (FEDs) continued to be the preferred channel for receipt of remittance. A 84.8% share of total remittances were received via FEDs in April 2019 compared to 87.3% share recorded last month and 85.0% in April 2018. The general public continued to prefer sending and receiving money via FEDs compared to banks, as FEDs have more access points and their services are much quicker.

Private Transfers

Private transfers marginally rose by 0.1% to a total of $24.1 million in April 2019, similar to the amount recorded in March 2019. Majority of private transfers are for family support and gifts from family abroad. It continued to hold the largest component of total receipts, representing 87.6% of the total remittance receipts and 39.2% of the total OET receipts. In year ended terms, the total receipts of private transfers continued to rise by 1.9% ($5.9 million) to $316.1 million, due mainly to receipts for family support.

Employee Compensation¹

Compensation of employees increased by $0.2 million over the month (7.7%) to $2.4 million which accounted for 8.6% of the total remittances in April 2019. Both receipts from the other wages & salaries and RSE /SWP workers rose over the month by $1.0 million and $0.07 million respectively. Previous liaison with the Ministry of Internal Affairs confirmed that seasonal workers return home mostly between November to April of every year which explained the high receipts recorded these past months.

In year ended terms, total employee compensation rose by $3.9 million (19.4%) to $23.8 million. Other wages and salaries accounted for 51.1% ($12.2) of the employee compensation receipts over the year and the remaining 48.9% ($11.6 million) were from RSE/SWP workers. New Zealand contributed the most to the seasonal workers’ receipts of $8.3 million while the seasonal workers from Australia only contributed $3.3 million.

Private capital transfer & Social Benefits

Lower private capital receipts for building and renovation of houses by $0.1 million was recorded over the month. Receipts for social benefits on the other hand rose by $0.1 million. Private capital transfers and social benefits receipts accounted for 3.1% and 0.8% respectively of the total remittance receipts in April 2019. Over the year, both the private capital transfers and social benefits receipts rose by $0.2 million and $0.4 million respectively.

Outlook

Remittance receipts are expected to rise significantly next month and the near term as Tonga is approaching the upcoming busy season particularly the family month of May and the annual church conferences. The Reserve Bank will continue to closely monitor the remittance receipts given it is the largest source of foreign exchange inflow for the Tongan 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
• 2018
• 2017
• 2016
• 2015

Remittances Releases for 2019

	March Released on 3 July 2019 | 185 KB		February Released on 29 July 2019 | 247 KB
	January Released on 18 June 2019 | 185 KB		February Released on 21 June 2019 | 205 KB

2018

	November Released on 5 April 2019 | 210 KB		December Released on 1 May 2019 | 210 KB
	September Released on 7 February 2019 | 210 KB		September Released on 7 February 2019 | 210 KB
	July Released on 23 November 2018 | 204 KB		August Released on 23 November 2018 | 388 KB
	May Released on 20 August 2018 | 212 KB		June Released on 10 October 2018 | 189 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