Cost-effective remittances take the sting out of inflation
Credit to Author: The Manila Times| Date: Tue, 26 Mar 2019 00:00:23 +0000
After a rocky economic ride in 2018 with exorbitantly high levels of inflation, the Philippines faces an uncertain year ahead. The economic outlook for 2019 has prompted mixed views with some commentators predicting that growth will fall short of government targets. Will this signal a return to high inflation and dent spending power? How will the dependents of OFWs (Overseas Filipino Workers) manage if the cost of day-to-day essentials takes ever-larger amounts from their remittance lifelines?
Inflation has certainly eroded some types of consumer spending in recent months, but everyday expenses such as food and housing are not things that can simply be given up in hard times. However, on the plus side, the decline in the value of the peso has partly offset inflation, enabling OFWs to take advantage of favourable exchange rates to send more money home.
Whatever 2019 brings, OFWs will need to look for the most cost-effective and efficient ways to transfer money to their family and friends. This is where international money transfer organisations such as Xpress Money can make a big difference in both good times and bad.
With Xpress Money you can make remittances to the Philippines as cash, bank account transfers and mobile wallet credits. Whatever method you choose, you will benefit from great exchange rates and low transfer fees. If you were to use a bank, expect charges that sometimes reach double figures. In contrast, Xpress Money’s global average is just 2%.
And with cost-efficiency comes convenience. There are more than 15,000 agent locations across the country where you can send money to be picked up, and there are nearly 3,000 agents in Manila alone. This goes a long way in saving costs as people will never have to travel far to find the nearest Xpress Money agent.
Those OFWs whose remittances are not totally absorbed by day-to-day living expenses, one way of fighting inflation is to reserve some funds for investments. Naturally, investments carry risks, but investing wisely in stocks, real estate or other assets can help beat inflation and be well prepared for the future. As an OFW it is imperative to think long term, as you will need to ride out economic volatilities if you want to see your investment grow in real terms.
Inflation is a fact of life. Cost-effective remittances help money go further – both for the sender and the receiver – and take some of the sting out of rising prices. The more you save on remittance costs by using organisations such as Xpress Money, the more your beneficiaries in the Philippines will have for essentials – which will be particularly welcome if inflation returns to last year’s highs. And if either you or your beneficiaries have surplus funds for an investment strategy, however modest, so much the better.
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