Year-to-date hot money outflow at $786M

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Foreign portfolio investment movement in the Philippines reached a year-to-date net outflow of $786.67 million, as net outflows for the week ending September 26 improved from the previous week, data from the Bangko Sentral ng Pilipinas (BSP) showed on Monday.

The weekly update released by the BSP recorded a net outflow of $90.67 million for September 22 to 26, easing from a net outflow of $165.95 million in the week of September 15 to 19.

That $90.67 million net outflow during the week was based on total foreign portfolio investment inflows of $424.61 million, offset by $515.28 million of total outflows during the period.

Speculative funds represent money invested in financial assets such as shares of companies listed on the Philippine Stock Exchange, peso-denominated government debt instruments and peso time deposits.


Foreign portfolio investments are a component of the country’s 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, and even remittances from Filipinos abroad.

Last year, foreign portfolio investments resulted in a net inflow of $4.2 billion, surpassing the revised $3.2-billion target of the BSP for the year. For 2014, these registered investments are projected to decline to $1.5 billion as inflows are forecast at $1.8 billion against $300 million of outflows.

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