Net foreign portfolio investment inflows drop to $279.3 M in April

Foreign portfolio investments registered by the central bank in April amounted to a net inflow of $279.30 million, lower compared March’s $1.13 billion.

The Bangko Sentral ng Pilipinas (BSP) noted that compared to same time last year of $51.50 million, the current net inflow is an improvement.

The total registered inflows were lower at $1.37 billion in April from $2.47 billion in March but it was higher than the previous year’s $1.32 billion.

Total outflows, in the meantime, amounted to $1.01 billion in April compared to March’s $1.34 billion, and from same period in 2017 of $1.27 billion.

The BSP said 82.2 percent of investments registered during the month were listed securities such as banks, holding firms, property companies, food, beverage and tobacco firms, and retail companies.

The balance of hot money inflows were invested in peso government securities.

The top five investing countries – as far as these speculative hot money is concerned – are the United Kingdom, the US, Hong Kong, Singapore, and Luxembourg.

These countries account for 76.6 percent of registered inflows.

“The US continues to be the main destination of outflows, receiving 74.5 percent of total remittances,” said the BSP.

As explained by the BSP, the registration of inward foreign investments is optional under the liberalized rules on foreign exchange transactions. Registration allows investors to buy foreign exchange for “repatriation of capital and remittance of earnings that accrue on the registered investment.” (LCC)