Yr-to-date $1.877B net inflow reverses yr-earlier $2.05B net outflow
The flow of foreign portfolio investment in and out of the Philippines resulted in a net inflow of $1.877 billion in the year to April 17, marking a recovery from the year earlier, when such investment showed a net outflow of $2.051 billion, the central bank said.
No other details on the cumulative amount were available from the weekly update on foreign foreign portfolio investments released by the central bank last week.
In the week to April 17 alone, foreign portfolio investments—also called hot money—posted a net outflow of $216 million, reversing a net inflow of $289 million a week earlier.
Total inflows for the period April 13 to 17 reached $442 million, against total outflows of $658 million.
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.
The central bank has forecast that the country will swing back to a payments surplus by end-2015 with $1 billion from a deficit of $2.88 billion the year before.