The country continues to bleed foreign currency as foreign portfolio investments, also known as hot or speculative money, yielded net outflows for the month of June, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
“BSP-registered foreign portfolio investments for June 2020 yielded net outflows of $235 million resulting from the $1.3 billion gross outflows and $1 billion gross inflows for the month,” the BSP said.
“This is smaller than the recorded net outflows of $1 billion in May,” it added.
Bulk or 61.4 percent of the overall outflows went to the US.
Still, gross inflows for the month is more than twice of the $486 million recorded in May, majority of which or 92.3 percent were placed heavily on debt instruments listed in the local bourse while the remaining 7.7 percent went to peso-denominated government securities.
$1B flew in H1
By country origin, the United Kingdom, Singapore, the US, Norway and Bahamas were the top five investor countries for the month having a combined share to total at 71.7 percent.
On a cumulative basis, hot money resulted in net outflows of $1 billion for the first half of the year. This compares to the posted $721 million net outflows in the same period year-ago.