‘Hot money’ outflows slow further in August

Registered foreign investments with the Bangko Sentral ng Pilipinas (BSP) posted net outflows for the fourth straight month in August, although lower than in July.

Data released by the central bank showed that transactions on foreign investments through authorized agent banks (AABs) posted $86.29 million in net outflows last month.
 
This is lower than the $103.14-million net outflows in July but a reversal of the $11.51-million net inflows in August 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.
 
Gross outflows for the month grew by 12% or $94 million to $878 million from $784 million in the previous month, with the United States receiving 72.5% of the outward remittances.
 
Gross inflows stood at $792 million, reflecting a 16.3% or $111 million increase from $681 million in July.
 
The BSP said 76% of the inflows for the month were channeled into securities on the Philippine Stock Exchange, mainly in banks; holding firms; property; food, beverage, and tobacco; and electricity, energy, power, and water.
 
Some 24% went to investments in peso government securities, while less than 1% was put into other instruments.
 
Investments for the month came mostly from the United Kingdom, the United States, Hong Kong, Malaysia, and Luxembourg, which cumulatively accounted for 82.6%.
 
The latest figures brought the year-to-date gross inflows to $8.878 billion and gross outflows to $8.134 billion, reflecting net inflows of $743.86 million. — VBL, GMA News