BSP reports $14-M 'hot money' in July

ABS-CBN News

Posted at Aug 12 2010 06:47 PM | Updated as of Aug 13 2010 02:51 AM

MANILA, Philippines - Foreign portfolio investments, also called “hot money," posted a net inflow of $14 million in July, reversing the $86 million outflow in June, the Bangko Sentral ng Pilipinas (BSP) said Thursday.

In a statement, the BSP attributed the improvement to favorable developments on the domestic front, including lower inflation, a stable peso, and increased investor confidence following with the assumption of the new administration.

But the central bank said the July hot money inflow was 78% lower than the $66 million recorded in the same month last year.

For the first 7 months, transactions yielded a net inflow of $701 million, 164% higher than the $265 million net inflow during the comparable period in 2009.

Registered investments aggregating $5 billion were up by 37% from last year's $3.6 billion.

Investments in stocks of $3.4 billion exceeded last year's level by 24%, with banks, property, telecommunication and holding firms as major beneficiaries.

US, United Kingdom, Singapore, Malaysia and Luxembourg were the top 5 sources of the country's foreign portfolio investments.

Year-to-date outflows, which were mostly withdrawals from interim peso deposits, reached $4.3 billion compared to $3.4 billion in 2009.