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Those were the highlights of Arroyo’s gathering at Jumeirah hotel in Dubai Sunday night.  Source: Inquirer.net

•  Hedging facility - There are two options under the hedging facility, which is being handled by the Development Bank of the Philippines (DBP): 1) peso insurance and 2) forward.  An OFW can chose to avail of a peso insurance, wherein a "protection rate" will be set. The more pesos an OFW wants for every dollar remitted, the higher the cost of the peso insurance.  For example, if an OFW wants to set a protection rate of P41:$1, for his $10,000 remittance, he or she has to pay an insurance fee rate of 1.42 percent of the money remitted or $142. The protection rate can be set for a minimum of one month up to a maximum of 12 months. The insurance rate fee varies every time the OFW hedges, depending on the prevailing exchange rate.         Under the forward option, an OFW will not pay to ensure a certain exchange rate, but he or she will agree to a market-determined rate, regardless of whether or not the dollar appreciates or depreciates at the time of maturity. Like the peso insurance option, an OFW can hedge using the forward for a minimum of one month up to a maximum of 12 months.The hedge facility will be available at the Overseas Workers Welfare Administration (OWWA) where the OFW is based. 

• LTNCDs (long-term negotiable certificate of deposit) - The LTNCDs (which will be available through Land Bank of the Philippines by March) will be issued in P20,000 denomination with five and a half and 10-year tenors. The notes will yield 6.25 percent for the five and a half-year tenor, and 6.88 percent for the 10-year tenor.  If an OFW avails of a P20,000 LTNCD, it will earn P8,056 in five and a half years or P12,760 for 10 years.

• OFW Cash Card - To remit money via SMS (short messaging service), an OFW must avail of the Land Bank OFW Cash Card. The package includes a cash card and a SIM card for the OFW, and a cash card for his beneficiary. (This is just a variation of the SMART Money product). A menu is preloaded in the OFW’s SIM so there is no need to memorize key words, Smart spokesman Mon Isberto said in a presentation. To send money, he has to load his cash card and follow the instructions on the SIM menu. An acknowledgement receipt will be sent to him through SMS, confirming the remittance. Afterwards, the beneficiary can withdraw the money from any ATM machine, on all ATM networks, Isberto said. Each transaction costs P5 and a roaming fee of P20. Another P2.50 is charged to the sender’s airtime load.

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