Hot money net outflow hits $599.7M

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Foreign portfolio investments hit a net outflow of $599.69 million in 2015, worse than what the Bangko Sentral ng Pilipinas (BSP) expected for the year.

The full-year result surpassed the central bank’s $200-million net outflow projection and was also wider than the $310.21-million net outflow recorded in 2014.

Hot money outflows totaled $20.53 billion during the year, outpacing total inflows of $19.93 billion, data released by the central bank on Thursday showed.

“While net cumulative inflows reached $1.8 billion during the first two months of 2015, these inflows were fully offset by net outflows in the succeeding months (except for the small net inflow of $28 million in October), due mainly to profit taking in the local stock market, as well as concerns on the then imminent interest rates lift-off in the United States and slowdown of the Chinese economy,” the central bank said in a statement.


It stressed that the $20.53-billion total outflow was lower than the $22.11 billion recorded the preceding year, with the bulk or 90.5 percent seen in capital repatriation and remittance earnings.

The total inflows of $19.93 billion was 8.6 percent lower compared to the $21.8 billion in the previous year, with registered portfolio investments going to Philippine Stock Exchange (PSE)-listed securities (77.5 percent) and peso government securities (21.7 percent).

Transactions for PSE-listed securities yielded a net outflow of $659 million, while other peso debt instruments resulted in a net outflow of $40 million.

Meanwhile net inflows were realized for peso time deposits ($52 million); peso GS ($25 million); and unit investment trust funds ($13 million).

“The United Kingdom, the United States, Singapore, Luxembourg and Hong Kong were the top five investor countries during the year, with a combined share totaling 79.6 percent,” the central bank said.

“The US continued to be the main destination of outflows, receiving 79.7 percent of the total,” it added.

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