Foreign portfolio investments or “hot money” posted net outflows of $715 million in the first 10 months of 2023, the Bangko Sentral ng Pilipinas said Friday.
This was a reversal of the $305-million net inflows registered in the same period last year, data showed.
The BSP recorded net outflows of $328 million in October, following net outflows of $698 million in September.
About 60.5 percent of registered investments in October were in Philippine Stocks Exchange-listed securities, most of which were investments made in banks, property, holding firms, casinos and gaming and food, beverage and tobacco, while about 39.5 percent went to peso government securities and the remaining investments (less than one percent) were in other instruments.
Investments in October mostly came from the United Kingdom, United States, Luxembourg, Singapore and Hong Kong with a combined share to total of 88.0 percent.
Registration of inward foreign investments delegated to authorized agent banks by the BSP is optional under the rules on foreign exchange (FX) transactions.
Portfolio investments are also called hot money because of the ease they are invested in and taken out of the financial markets.