The country continues to bleed foreign currency as foreign portfolio investments also known as hot or speculative money, registered net outflows for the month of April.
Data from the Bangko Sentral ng Pilipinas (BSP) show hot money yielding net outflows of $374 million resulting from gross inflows of only $651 million versus the hefty gross outflows of $1 billion.
The latest gross inflow reflected a 21 percent decline in April 2021 from the posted $824 million in March 2021.
Bulk or 68.9 percent of the inflows were placed heavily in securities listed in the local bourse while the remaining 31.1 percent went to peso-denominated government IOU.
Top investor countries during the month include the United Kingdom, United States (US), Luxembourg, Singapore and Norway, comprising 84.7 percent share to the overall stock.
Gross outflows during the month declined by 24.9 percent, the majority of which exited to the US.
“Developments during the month included investor reaction to easing inflation, contraction of the country’s gross domestic product in 2020, extension of local quarantine measures, progress of the government’s vaccination program and the continued rise of infections in the country,” the central bank explained.
On a cumulative basis, foreign portfolio investments for the first four months of the year yielded net outflows of $857 million, lower thhoit an the listed $2.1 billion net outflows in the same period year-ago.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. said that the recent affirmation of S&P Global Ratings along with the same decision by other credit watchdogs will help shore up confidence towards the country, yielding more foreign investments in the process.