‘Hot money’ outflows continued in March

MANILA  -Short-term foreign investments or “hot money” registered with the Bangko Sentral ng Pilipinas (BSP) showed net outflows for the second month in a row but much less at $70 million in March.

Data from the BSP revealed there were net inflows of $531 million in February and $305 million in March 2022.

The central bank said in a statement that last month, $1.26 billion of BSP-registered foreign investments flowed in while $1.33 billion flowed out.

Compared to February numbers, gross outflows increased by 9.5 percent from $1.2 billion while gross inflows surged by 85 percent from $680 million.

Again, like in February, about two-thirds or 67 percent of gross outflows went to the United States.

Meanwhile, about two-thirds of gross inflows were put into Philippine Stock Exchange-listed shares while 35 percent was invested in government securities.

Inflows into PSE-listed securities accounted for investments in shares in companies that are engaged in banking and in property, and those operating as holding firms as well as those in the business food, beverage and tobacco; and transportation services.

Of the gross inflows, a total of 86 percent came from the United Kingdom, United States, Singapore, Luxembourg and Norway.

The March readout brought the first-quarter tally to net outflows of $309 million, ballooning from $16 million in the same three months last year.

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