Hot money returns to net inflow in Feb

More foreign portfolio investments flowed into the Philippines in February, snapping two straight months of net outflows, amid the government's retail Treasury bond offering.

- KEISHA TA-ASAN

Based on data from the Bangko Sentral ng Pilipinas (BSP), the net inflow of foreign portfolio investments reached $689.27 million in February, a reversal of the $549.28-million net outflow recorded a year ago.

This is also an improvement from the $75.83-million net outflow of hot money in January. The February inflow marked the highest in seven months or since the $961.58 million inflow recorded in July 2023.

Foreign portfolio investments or hot money refer to purely speculative funds that quickly and regularly move within the global financial markets as investors scout for the higher short-term yields available.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said more hot money entered in February amid improving investor sentiment due to better economic data.