More hot money entered Phl in Sept

More speculative funds entered the Philippines in September, marking the third straight month of net inflow, amid continued appetite among foreign investors, according to the Bangko Sentral ng Pilipinas (BSP).

- - Keisha Ta-asan

Data released by the BSP showed the net inflow of foreign investments registered with the central bank through authorized agent banks amounted to $1.03 billion in September, reversing the $698.01 million net outflow recorded a year ago.

In September, gross inflows more than doubled to $2.53 billion from $887.61 million in the same month last year. On the other hand, gross outflows slipped by five percent to $1.51 billion from a year-ago level of $1.59 billion.

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.