Transactions on foreign investments registered with the Bangko Sentral ng Pilipinas through authorized agent banks (AABs) in October 2022 recorded net inflows of $83 million, a reversal from the $367 million net outflows recorded in the previous month.
This resulted from the $645 million gross inflows and $561 million gross outflows for the month.
Commonly called “hot money,” these investments refer to the flow of funds from country to country so investors can take advantage of higher interest rates. The term got its name because money can rapidly flow into a country’s economy and exit just as quickly.
The $645 million registered investments in October 2022 reflected a decrease of 27.7 percent or by $247 millio) compared to the $892 million registered in September 2022.
Majority of investments registered were in PSE-listed securities while the remaining went to investments in Peso government securities and other instruments.
Investments for the month mostly came from the United Kingdom; US; Singapore; Luxembourg; and Hong Kong with combined share to total at 84.4 percent.
The $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. The US received 67.7 percent of total outward remittances.
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, while 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.
The $83 million net inflows in October 2022 were a reversal from the $221 million net outflows recorded in October 2021.
Year-to-date transactions for foreign investments registered with the BSP, through AABs yielded net inflows of $305 million, a turnaround from the $680 million net outflows noted for the same period last year. – Jimmy Calapati
