Hot money shifts to net inflow in May

More short-term investments entered the Philippines in May as net inflow hit $42.86 million, reversing the $124.49 million outflow in the same month last year, the Bangko Sentral ng Pilipinas (BSP) said.

- Keisha Ta-asan

The net inflow in May was also a turnaround from the $312.18 million that left the country in April, ending two straight months of hot money outflows.

This has brought the five-month tally to a net inflow of $108.1 million, a reversal from the $794.18 million outflows in the same period last year.

Foreign portfolio investments, also known as hot money or speculative funds, flow regularly between financial markets as investors attempt to ensure they get the highest short-term interest rates possible.