PH balance of payments posts $3.182 billion in surplus

“A balance of payment surplus happens when the foreign currency inflows exceed the outflows.”

This is a good indication of the country’s financial health.  But it is not really that reliable.  What the reporter should have done was to segregate and broke it down into trade, OFW remittances, foreign loan proceeds/loan payments, long term investments and “hot money”.

If the trade is positive, then it is good because we are exporting more than we import.  OFW remittances is always positive.  It is estimated to hit about $2B/month already.  Long term investment is good because it will stay with us for a long time.

What is really bad is the “hot money”.  It comes in and goes out in a jiffy depending on the situation in the stock market, and you’ll be surprised, on the whims and caprices of the investors.

This is the kind of money that should be discouraged because whatever gain the investors realize do not filter down into the economy. In fact they, most of the time, disrupt the market by creating an illusion of a “bull”, then sell for a bargain and get out.   

The “hot money” investors bring their money, play the stock market and whatever the consequence, take out their money, and again look for other stock markets to play with.  It is disruptive and illusory.  Is there a way the BSP can minimize if not control “hot money”?

GALING…galing talaga nang nangyayari sa bayan ngayon! Vote of confidence ng maraming ibang mga bayan sa bansa ay pataas-ng-pataas. Simula ng nawala yong maliit na paliit-ng-paliit noon ang bayan, bumuti, gumanda, lumakas, at yumabong ang lagay ng kalusugan ng lupang hinirang.

Mabuhay ang pamahalaan ni PNoy! Pag nagpatuloy ang ganitong pamamaraan sa bayan sa tulong na din ng mga kababayan, walang duda na ang ating bansa ay ligaya at tagumpay ang matatamasa.