Foreign currency investments more known as speculative or “hot money” flowed inward in the first five weeks of the year, a small snapshot of the prevailing view of foreign fund managers on the economic prospects of the Philippines.
According to the Bangko Sentral ng Pilipinas (BSP), gross inflows for the period totaled $951.68 million that allowed the central bank to report net inflow of $83.88 million as the outflows totalled only $867.8 million.
These are funds invested by foreign fund managers in the local stock market and the peso debt notes of the national government.
Regulators the entry of foreign direct investments (FDI) more than hot money as these are kept for the long haul in domestic enterprises that generate employment for Filipinos and taxes for the national coffers.
In January this year alone, gross inflows totaled $731.43 million versus gross outflows of only $716.82 million or net inflow of funds during the month.
Over the five-week period, the coming and going of foreign funds in the Philippines yielded a net inflow 1.4 percent higher than the comparable period last year.