Hot money inflows rebound in October after 5-month decline

SHORT-TERM investments made by foreign investors rebounded in October after five consecutive months of decline, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.

Transactions on foreign investments registered with the BSP, through Authorized Agent Banks (AABs), recorded net inflows of $83 million in October 2022.

In September 2022 and October 2021, the country recorded net outflows of $367 million and $221.11, respectively.

“This resulted from the $645 million gross inflows and $561 million gross outflows for the month,” BSP said in a statement.

The data showed the country recorded $645 million worth of investments in October 2022. This, however, reflected a decrease of 27.7 percent or by $247 million compared to the $892 million registered in September 2022.

Majority of registered investments or 73 percent were in publicly listed securities while the remaining went to investments in Peso government securities at 27 percent and other instruments at less than 1 percent.

BSP said these investments were mainly in property; banks; holding firms; food, beverage and tobacco; and telecommunications.

“Investments for the month mostly came from the United Kingdom; United States (US); Singapore; Luxembourg; and Hong Kong with combined share at 84.4 percent,” the BSP added.

The data also showed $561 million gross outflows for the month were lower by 55.4 percent or by $698 million than the $1.3 billion recorded in September 2022. Majority or 67.7 percent of total outward remittances went to the United States.

Meanwhile, year-on-year, registered investments in October 2022 decreased by 32.1 percent or by $305 million from the $950 million recorded in October 2021.

Gross outflows were also lower by 52.1 percent or by $610 million than the outflows recorded for the same period last year at $1.2 billion.

Year-to-date transactions—or between 1 January and 31 October 2022—for foreign investments registered with the BSP, through AABs, yielded net inflows of $305 million.

This was a turnaround from the $680-million net outflows noted for the same period last year or between 1 January and 31 October 2021.

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