So-called hot money enters and exits the country with ease, unlike firmer commitments like foreign direct investment.
File
Hot money leaves Philippines in May
Ian Nicolas Cigaral (philstar.com) - June 14, 2018 - 9:15pm

MANILA, Philippines — More short-term foreign funds exited than entered the Philippines in May, reflecting market jitters in the face of higher US government debt yields and a depreciating peso, the Bangko Sentral ng Pilipinas reported on Thursday.

Registered foreign portfolio investments, also known as “hot money” for their volatility, amounted to $1.2 billion in May, down by 11.9 percent and 18.4 percent from figures recorded the previous month and a year ago, respectively.

“This may be attributed to higher US treasury yields and investor concerns on a weaker Peso and rising oil prices which may affect inflation,” the BSP said.

So-called hot money enters and exits the country with ease, unlike firmer commitments like foreign direct investment.

According to the central bank, the United Kingdom, the US, Singapore, Malaysia and Hong Kong were the top five investor countries for the month, with combined share to total at 74.8 percent. 

Meanwhile, the US continued to be the main destination of foreign capital outflows, receiving 77.4 percent of total remittances.

BANGKO SENTRAL NG PILIPINAS (BSP) HOT MONEY
Philstar
  • Latest
  • Trending
Latest
Recommended
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with