$247 M hot money exits Phl in 2023

A total of $247.3 million worth of speculative funds exited the Philippines last year, reversing the $886.7 million net inflow recorded in 2022, according to the Bangko Sentral ng Pilipinas (BSP).

-  LAWRENCE AGCAOILI

Latest data from the central bank showed the gross inflow of foreign investments registered with the central bank through authorized agent banks inched up by 4.4 percent to $12.88 billion from $12.34 billion.

More than half or 57.3 percent of the total inflow went to securities listed on the Philippine Stock Exchange (PSE) particularly banks; property; holding firms; food, beverage and tobacco; and transportation services.

The remaining 42.7 percent were invested in peso government securities and other investments.

About 83.5 percent of the total inflow last year came from the United Kingdom, the US, Singapore, Luxembourg, and Japan.

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

On the other hand, gross outflows of hot money went up by 14.6 percent to $13.13 billion in 2023 from $11.46 billion in 2022.