Hot money $1.7B net inflow yr-to-date shows outflow ebbing


FOREIGN portfolio investments in the Philippines registered a net inflow of $1.697 billion in the first three months of the year, with outflows continuing to ebb not just during the latest week under review but since the end of last year, central bank data shows.

The weekly update on foreign portfolio investments – also called hot money – shows a net outflow of $50.20 million for the week ending March 20, recovering slightly from a net outflow of $142.62 million in the week earlier.

According to Bangko Sentral ng Pilipinas (BSP) figures for the period March 16-20, foreign portfolio investment inflows totaled $352.57 million, against total outflows of $402.77 million.

The net inflow so far this year also marks a recovery from 2014, when foreign portfolio investments resulted in a net outflow of $310.21 million, which was a reversal of the $4.22 billion net inflow recorded in 2013.

Hot money or speculative funds invested in financial assets are a component of the Philippines’ balance of payments (BOP), which summarizes the country’s economic transactions with the rest of the world over a certain period.

Components of the BOP also include trade, foreign direct and portfolio investments, as well as remittances from Filipinos abroad.


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