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‘Hot money’ outflows hit 17-month high in September
By JON VIKTOR D. CABUENAS,GMA News Short-term foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) posted net outflows for the fifth straight month in September, marking the biggest level in 17 months.
Data released by the central bank showed that transactions on foreign investments through authorized agent banks (AABs) posted $367.30 million in outflows in the past month.
This compares with the $86.29-million net outflows in August and the $24.16-million net outflows in the same month last year. It is also the highest since the $373.95-million net outflows posted in April 2021.
Gross inflows for the month stood at $891.89 million, up from $791.59 million in August but lower than the $1.188 billion in September 2021.
Majority or 87.1% of the investments registered were with securities listed with the Philippine Stock Exchange (PSE) mainly in electricity, energy, power, water; food, beverage, tobacco; property; banks; and holding firms.
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Some 12.9% went into Peso government securities, while less than 1.0% went into other instruments.
The bulk of the inflows for the month came from Singapore, the United Kingdom, the United States, Luxembourg, and the British Virgin Islands, which cumulatively accounted for 79.9%.
Gross outflows for the month increased by 43.4% to $1.259 billion from $877.88 million in August, and are 3.8% higher than the $1.212 billion in September of the past year.
The United States received 72.5% of total outward remittances for the month.
Year-to-date transactions yielded net inflows of $221.56 million, marking a reversal of the $494.13-million outflows in the same period last year.
The central bank's registration of inward foreign investments with the AABs is optional under the rules on foreign exchange transactions and is only required if the investor purchases foreign exchange from the AABs. — VBL, GMA News