Foreign fund managers withdrew $3.3 billion from the domestic financial markets in the first half in reaction to the COVID-19 pandemic, the Bangko Sentral ng Pilipinas said Thursday.
The BSP said in a statement registered foreign portfolio investments or “hot money” posted net outflows of $3.3 billion, larger than the $721-million net outflows a year ago.
Data showed the gross outflows of $9 billion offset the $5.7-billion gross inflows in the six-month period.
The BSP said other reasons for the withdrawals of investments from the domestic markets were the “continuing geopolitical tensions between the US and Iran; ongoing trade negotiations between the US and China; and renegotiation of the contracts of the country’s water concessionaires.”
Portfolio investments posted net outflows of $235.38 million in June, wider than the $36.03-million net outflows a year ago. Gross inflows for the month reached $1.019 billion, lower than the $1.411 billion a year ago, while gross outflows hit $1.254 billion, down from $1.447 billion in the same period last year.