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April 24, 2024

Hot money outflows soar to $351.87 million in April

The net outflows of short-term foreign investments or “hot money” widened in April to $351.87 million from only $70.26 million the previous month.

This substantial increase marks a significant reversal from the same period in 2022 when net inflows amounted to $1.4 billion, according to data released by the Bangko Sentral ng Pilipinas (BSP).

The cumulative data for the first four months of this year reveals a stark contrast in the investment landscape.

Foreign investments recorded with the BSP experienced net outflows totaling $680.07 million, significantly diverging from the net inflows of $1.39 billion observed during the corresponding period last year.

The BSP further disclosed that 57.3 percent of the registered investments were allocated to securities listed on the Philippine Stock Exchange. These securities encompass a range of sectors, including banks, holding firms, property, food and beverage, tobacco, and transportation services.

Moreover, approximately 42.7 percent of the investments were dedicated to peso-denominated government securities, while less than one percent was directed towards other instruments such as unit investment trust funds, exchange traded funds, and Philippine Depositary Receipts.

As for the breakdown of the investor countries in April, the United Kingdom, the United States, Singapore, Luxembourg, and Norway emerged as the top five contributors, collectively accounting for 84.1 percent of the total share, as per BSP’s report.

Last year’s net hot money inflows amounted to $886.7 million, falling short of the projected $3.5 billion.

For the current year, the central bank anticipates net hot money to reach $2.5 billion, with expectations of further growth to $3.5 billion in the future.