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Hot money posts inflows in Nov



The country’s foreign portfolio investments (FPI), also known as hot or speculative money, yielded net inflows for the month of November, reversing the recorded net outflows month-ago.

Data from the Bangko Sentral (BSP) showed FPI in November recorded net inflows of $110 million, a turnaround from the $221 million net outflows last month.

The central bank traced this development to the larger increase in investments, which outweighed the measly gain in gross outflows.

“The $1.17 billion gross outflows for the month were slightly higher by 0.4 percent (or by $4 million) than the $1.71 billion recorded in October 2021,” the BSP said.

Bulk or 62.6 percent of the hot money exited to the US.

Registered investments of $1.3 billion on the other hand, rose by 35.3 percent or $335 million from the listed $950 million in October 2021.

Majority or 94.1 percent of the FPI were placed in securities listed in the local bourse while investments in peso-denominated government IOU accounted for the remaining 5.9 percent.

By country source, the United Kingdom, US, Hong Kong, Luxembourg and Singapore were the top five investor countries for the month, having a combined share to total at 73.2 percent.

On a cumulative basis, FPI for the first 11 months of the year posted net outflows of $570 million, lower than the $3.7 billion net outflows in the same period in 2020.

The central bank earlier revised its projection for hot money this year, scaling back the previous $4.3 billion view to just $1.5 billion.