'Hot money' outflows narrow in July — BSP

Registered foreign investments with the Bangko Sentral ng Pilipinas (BSP), formerly referred to as foreign portfolio investments or "hot money," continued to post net outflows in July, albeit lower than in the previous month.

Central bank data showed $103.14 million in net outflows in July, as there were $783.87 million in gross outflows while gross inflows fell to $680.73 million from $1.038 billion the previous month.

This compares with the $342.19-million net outflows in June and the $339.70-million net outflows in July 2021.

The majority, or 64.8%, of the investments for the month were registered in securities listed on the Philippine Stock Exchange (PSE), mainly in holding firms; food, beverage, and tobacco; property; banks; and transportation services.

The remaining investments went into investments in peso government securities, with 35.2%.

Investments for the month mostly came from the United Kingdom, the United States, Singapore, Hong Kong, and Luxembourg, which cumulatively accounted for 84.7%.

The latest figures brought the year-to-date investments to $625.15 million in net inflows, higher than the $445.88 million in the comparable period in 2021.

The registration of inward foreign investments delegated to all authorized agent banks (AABs) by the BSP is optional and required only if it involves foreign exchange purchases for repatriation of capital and remittances of earnings.

“Without such registration, the foreign investor can still repatriate capital and remit earnings on its investment but the FX will have to be sourced outside the banking system,” the central bank said in a statement. —VBL, GMA News