More ‘hot money’ flees

More so-called “hot money” fled the country in the first week of 2017, resulting in a net outflow of $59.29 million.

From Jan. 2 to 6, foreign portfolio investment inflows hit $101.75 million, lower than the outflow of $161.04 million.

The net outflow of portfolio investment during the first week of the year reversed the net inflow of $2.97 million posted in the first week of 2016.

The inflow was smaller than the previousyear’s $154.87 million, while the outflow was bigger than the $151.91 million a year ago.

The net hot money outflow was posted ahead of US President Donald Trump’s assumption into office today (Friday, Jan. 20), which has been making markets jittery as the incoming leader of the country’s most powerful nation had won on a platform of protectionism in trade and labor.

Foreign portfolio investments are in the form of placements in publicly listed shares, government and private sector IOUs, and deposit certificates.

For 2017, the Bangko Sentral ng Pilipinas had projected a net outflow of hot money in the amount of $900 million. Ben O. de Vera