Hot money books net outflow in March

More short-term investments left the Philippines in March as investors pushed back their expectations of interest rate cuts from the US Federal Reserve.

- KEISHA TA-ASAN

Based on data released by the Bangko Sentral ng Pilipinas (BSP), the Philippines booked a hot money outflow of $236 million in March, three times higher than the $70.26 million outflow recorded in the same month last year.

It was also a reversal from the $689.2 million net inflow in February.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the withdrawal of foreign portfolio investments in March was largely due to expectations of delayed rate cuts from the US Fed.

Other offsetting factors that dampened investor sentiment include geopolitical risks in the Middle East, heightened tension between China and the Philippines regarding disputed waters as well as the El Niño-induced drought.