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November 5, 2024 6:50 pm

BSP: Philippines ‘Hot Money’ Turnaround In October

IMG Source: Giorgio Trovato | Unsplash

Bangko Sentral ng Pilipinas (BSP) said that more short-term foreign investments or “hot money” flowed in than out of the country in October, snapping five consecutive months of net outflows.

 

October had net inflows of $83 million, opposite from net outflows in September but crashing from net inflows of $950 million in October 2021, according to BSP.

 

The cumulative amount of BSP-registered investments from January to October has net inflows of $305 million.

 

Ten-month inflows meant a turnaround from the net outflows of $680 million in the same period of 2021.

 

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the improved data in October may have to do with improvement in global financial conditions.

 

“The United States stock markets and bond markets bottomed out in terms of price during the month, after US inflation eased further and there were generally better corporate earnings results,” Ricafort said.

 

$645 million in BSP-registered short-term investments flowed into the while $561 million flowed out this October.

 

The Philippines’ gross outflows in October decreased by 55% or $698 million from $1.3 billion in September. 

 

Around 68% of foreign investments in the Philippines were withdrawn and transferred to the United States.

 

In October, about 73% of foreign investments were invested in Philippine Stock Exchange-listed companies in property; banking; operating as holding firms; food, beverage, and tobacco; and telecommunications in the Philippines.

 

Source: Inquirer.net

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