MANILA – In February of this year, foreign portfolio investments, also known as hot money, recorded a substantial net inflow of USD 689 million through transactions facilitated by the Bangko Sentral ng Pilipinas (BSP) and authorized banks.
Data disclosed by the BSP late Wednesday (27 March 2024) revealed a USD 1.5 billion influx and USD 859 million in outflows for the month, resulting in the net figure.
This positive net inflow marks a significant turnaround from January 2024, which saw net outflows amounting to USD 76 million.
Foreign portfolio investments are characterized as hot money due to their rapid movements in and out of the economy.
The USD 1.5 billion invested in February represents a notable increase of 25.3 percent compared to January’s USD 1.2 billion.
During the period, 61.4 percent of investments were channeled into Peso Government Securities (GS), with the remaining 38.6 percent allocated to securities listed on the Philippine Stock Exchange. These investments were primarily directed towards banks, transportation services, holding firms, property, food, beverage, and tobacco sectors.
Major contributors to the investments hailed from the United Kingdom, Singapore, the United States, Luxembourg, and Hong Kong.
On the outflow side, USD 859 million was recorded for February, marking a 34.5 percent decrease from January’s USD 1.3 billion.
The United States remained the primary destination for outflows, receiving USD 485 million in total remittances.
For the initial two months of the year, foreign investments through BSP-authorized banks yielded a total net inflow of USD 613 million, a significant reversal compared to the USD 258 million net outflows observed during the same period last year.
(el Amigo/MNM)
