Net foreign fund withdrawals from the Philippines exceeded $500 million in October 2024, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The Philippines registered $529.69 million net outflows in October, a reversal from the $1.02-billion net inflows posted in September 2024, the Bangko Sentral ng Pilipinas (BSP) said over the weekend.
The BSP said that in the first 10 months of 2024, the transactions resulted in net inflows of $2.49 billion, a marked improvement from the $715.43-million net outflows in the same period last year.
It said that in October 2024, the transactions on foreign portfolio investments or hot money registered through authorized agent banks (AABs) showed gross outflows of $2 billion and gross inflows of $1.48 billion in October 2024.
Hot money refers to foreign funds temporarily parked in the equities and money markets to take advantage of short-term interest. These include investments in Philippine Stock Exchange-listed securities, peso-denominated government securities, peso time deposits with banks with minimum tenor of 90 days, other peso debt instruments, unit investment trust funds and other instruments such as exchange traded funds and Philippine Depositary Receipts.
Registered investments in October totaled $1.48 billion, down 41.5 percent from the $2.53 billion recorded in September. About 54.5 percent of the October investments, or $807.08 million, were in Philippine Stock Exchange-listed securities, primarily in banks, holding firms, transportation services, property, and food and beverage. The remaining 45.5 percent, or $672.79 million, were in peso government securities.
The United Kingdom, Singapore, the United States, Luxembourg, and Malaysia were the top sources of investments, accounting for 87.8 percent of the total.
Gross outflows in October 2024 reached $2.01 billion, up 33.4 percent from the $1.51 billion recorded in September. The U.S. remained the top destination of outflows, receiving $889.06 million, or 44.2 percent of the total.
The BSP said that year-on-year, registered investments in October 2024 rose 55.1 percent to $1.48 billion from $954.38 million in October 2023. Gross outflows increased 56.7 percent to $2.01 billion from $1.28 billion. Net outflows for October 2024 were up 61.4 percent to $529.68 million from $328.19 million a year ago.
Foreign investment transactions registered with the BSP through authorized agent banks yielded net inflows of $2.49 billion in the first 10 months, an improvement from $715.43-million net outflows recorded in the same period last year.
Under the BSP rules, registration of inward foreign investments with authorized agent banks is optional. It is only required if the investor or its representative will purchase foreign exchange from authorized agent banks to repatriate capital and remit earnings. Without registration, foreign investors can still repatriate capital and remit earnings but must source foreign exchange outside the banking system.
