Net ‘hot money’ outflows shrank by 54% in May

MANILA -The net outflows of short-term foreign investments or “hot money” registered with the Bangko Sentral ng Pilipinas shrank by 54 percent to $124 million in May from $270 million in the same month last year, according to the Bangko Sentral ng Pilipinas.

The BSP said the net outflows in May were also 65 percent less than the $352 million recorded in April

In May, $845 million of BSP-registered foreign investments flowed in while $969 million flowed out.

Gross outflows in May were 9 percent lower than the $1.1 billion recorded in April. About two-thirds (66 percent) of the amount went to the United States.

Meanwhile, gross inflows jumped by 18.5 percent from $713 million in April.

Of the amount that flowed in last May, 69.7 percent was invested in Philippine Stock Exchange-listed shares while 30.3 percent was invested in government securities.

For inflows into PSE-listed securities, these mainly went to shares in companies that are engaged in banking; food, beverage and tobacco; those operating as holding firms as well as those in the business of property; and transportation services.

Of the gross inflows, 86.6 percent came from the United Kingdom, United States, Singapore, Luxembourg, and Hong Kong.

The latest monthly data brought the January-May balance to net outflows of $805 million, also a reversal from net inflows of $1.1 billion in the same five months of 2022.