$541 million in 'hot money' exit Philippines in March: BSP

ABS-CBN News

Posted at Apr 29 2021 02:29 PM


MANILA - The Bangko Sentral ng Pilipinas said BSP-registered foreign portfolio investments (FPIs) for March 2021 yielded net outflows of $541 million. 

The central bank said the country booked $1.37 billion in gross outflows of FPIs and $824 million gross inflows for the month. 

This was larger compared to the net outflows of US$40 million recorded in February 2021, the BSP noted.

Also called hot money because of how fast they can enter and exit an economy, the BSP said about 90.5 percent of investments registered were in PSE-listed securities while the remaining 9.5 percent went to investments in Peso government securities. 

The United Kingdom, United States, Luxembourg, Switzerland and Hong Kong were the top 5 investor countries for the month, making up 78.7 percent of the total FPIs for the period, the BSP said. 

"Developments during the month included investor reaction to rising inflation and vaccine rollout amid the surge in virus infection and reimposition of restrictions on mobility in the National Capital Region and nearby provinces," the central bank said. 

Year-on-year, registered investments declined by 13.6 percent from the $954 million recorded in March 2020, the BSP added. 

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