Foreign portfolio investments to the Philippines, also known as “hot money,” posted an outflow of $353 million in the week ending December 13, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP data showed that hot money inflows reached $313 million, while outflows were recorded at $666 million. This brought net inflows to reach $4.245 billion for the period of January to December 13.
Net hot money inflow for the period was higher by $1.045 billion from the $3.2-billion revised target for 2013. Inflows were recorded at $27.837 billion, while outflows reached $23.592 billion for the period.
It was also higher from the $3.915 billion figure on the comparable period a year ago.
The central bank said that the registration of inward foreign investments with the BSP is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/profits/earnings that accrue on the registered investment.
This year, these investments, or placements in local stocks and debt securities are seen to decline further to $2.1 billion.