BSP data: 'Hot money' net inflows up to $1.025B in September

Short-term foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) posted higher net inflows in September to reflect the growth in investments on government securities, data from the BSP released Thursday showed.

Transactions on foreign investments through authorized agent banks (AABs) posted a $1.025-billion net inflow in September, up from the $533.95-million net inflows in August, and a reversal of the $698.01-million net outflows in September 2023.

Gross inflows for the month were recorded at $2.531 billion, up from the $1.370 billion in August, and the $887.61 million the same month last year.

More than half or 57.5% of registered investments in peso government securities, accounting for $1.455 billion, while the remaining 42.5% or $1.076 billion were in securities listed on the Philippine Stock Exchange (PSE).

Broken down, investments in PSE-listed securities were channeled into banks, holding firms, property, transportation services, and food, beverage, and tobacco.

Investments came mostly from the United Kingdom, Singapore, the United States, Luxembourg, and Malaysia with a cumulative share of 88.4%.

Gross outflows for the month were recorded at $1.506 billion, higher than the $836.78 million in August, and the $1.585 billion in September 2023. The United States continued to be the top destination, receiving $769.93 million or 51.1%.

Year-to-date transactions yielded net inflows of $2.917 billion, marking a reversal of the $585.28-million net outflows in the previous year. Gross inflows stood at $13.841 billion, while gross outflows were at $10.924 billion.

The central bank's registration of inward foreign investments with the AABs is optional under the rules on foreign exchange transactions and is only required if the investor purchases foreign exchange from the AABs. — RSJ, GMA Integrated News