Send money internationally to Philippines (PHP) using the mid-market exchange rate. Check and compare the rates from the major financial providers.
Send money to Philippines
What is the best PHP exchange rate today?
How much does it cost to send money to Philippines?
- International money transfers shouldn’t be expensive.
- Make sure your provider doesn’t add hidden fees or bad exchange rates to your money transfer.
- You should choose a provider that uses the mid-market exchange rate to convert your money.
Sending money to the Philippines
With 10% of its population living abroad and sending money back home, the Philippines are the third country which receives the most remittances in the world, after India and China. It can be surprising because the Philippines are far from being the most populated country with its 100 million people, especially compared to India and China.
So why the Philippines is among the countries which receives the most remittances?
This is explained by one simple fact: the Philippines is the first exporting country in the world of its workforce. 10% of its population work abroad. Emigration is an integral part of the country economy strategy. They need it. It is the main source of currencies they have.
Emigration is so ingrained that these workers have their own acronym: OFWs (Overseas Filipino Workers). Let's step back a little. The first wave of emigration took place in the early 20th Century when many Filipinos went to the United States to be hired in sugar cane plantations and in apples collection farms. Then the second wave concerned qualified workforce (students, nurses and doctors) who went to the United States and Europe. Then in the 1970s there was a big wave of emigration of Filipinos to the Middle East (Saudi Arabia, United Arab Emirates and Qatar) on the occasion of the building 'boom' sector of these oil producing countries. Many engineers and electricians, found jobs there. Today the 'standard' emigrant is a woman, often educated (teacher or accountant) who becomes domestic, servant or nanny in Europe or in other Asian countries (Singapore, Hong Kong or Japan). They're so well-known and appreciated that they're called the 'Pilipina'. They don't emigrate to have a career but to help their families. Most of their gains are sent to their families back home.
Remittances to the Philippines are essential to the country because they represent 10% of the nation's GDP. It allows to sustain the country's domestic consumption and growth. We saw a record amount of remittances in 2015 as a result of a decrease in the public expenses in 2014.
So you understood it, remittances are essential for the country's economy. It sustains growth and help to stabilise the peso against the US dollar.
The importance of comparing alternatives before sending money to the Philippines
As we just said, remittances to Philippines represent a huge volume. That's why the money transfer market is a very competitive one. As with all competitive markets new services are always emerging and the prices are always changing.
According to the World Bank, we count more than 250 money transfer companies that allow to send money to Philippines!
Which one should we choose? Have they different rates? How to find out the best one?
Let's take an example on how changing the rates can be to send 1'000$ from the United States to Philippines. With the graph below we can clearly see that the cheapest solution is never the same. Indeed the rates of money transfer companies are always changing. From mid-august to mid-september, Placid was the cheapest, then Transferwise, then Ria, then MoneyGram since mid-october.
The best solution is to choose none of them definitely. Indeed it's easy to challenge the rates each time we need to send money abroad.