AFTER four consecutive months of decline, the country’s foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) through its authorized agent banks (AABs) posted inflows in June.
Data showed hot money inflows reached $889 million, higher by $45 million or a growth of 5.3 percent compared to the $845 million recorded in May 2023.
“The recorded net inflows are also a reversal from the net outflows posted in May 2023 [$124 million] and in June 2022 [$342 million],” BSP said in a statement on Thursday.
However, year-on-year, the registered investments in June 2023 are lower than the $1 billion recorded in June 2022 by $149 million or by 14.4 percent.
Gross outflows also declined by $493 million or by 35.7 percent compared to the gross outflows posted in June 2022 at $1.4 billion.BSP said the $1-million net inflows in June 2023 are an improvement from the $342-million net outflows recorded for the same period a year ago.
“Year-to-date transactions [01 January to 30 June 2023] for foreign investments registered with the BSP, through AABs, yielded net outflows of $803 million, which is a reversal of the $778-million net inflows noted for the same period last year [01 January to 30 June 2022],” BSP said.
The data showed the majority of registered investments of $700 million or 78.7 percent were in Philippine Stock Exchange (PSE)-listed securities.
These investments were made in securities on property; banks; holding firms; food, beverage and tobacco; and telecommunications.
The remaining were in Peso Government Securities worth $190 million or 21.3 percent; and in other instruments, at less than one percent.
The top five investor countries for the month were the United Kingdom (UK); United States (US); Luxembourg; Singapore; and Switzerland with a combined share at 84.2 percent.
Registration of inward foreign investments delegated to AABs by the BSP is optional under the rules on foreign exchange (FX) transactions.
It is required only if the investor or its representative will purchase FX from AABs and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of earnings that accrue on the registered investment.
Without such registration, the foreign investor can still repatriate capital and remit earnings on its investment but the FX will have to be sourced outside the banking system.
Image credits: Patrick Roque via Wikimedia Commons CC BY-SA 4.0
Hot money inflows in June rise 5.3% to $889M
Source: News Paper Radio
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