Short-term foreign investments, known as 'hot money', in the Philippines turned positive in November, reversing the previous month's outflow. This trend was attributed to policy rate cuts and reduced bank reserve requirements, leading to lower borrowing costs and increased liquidity.
SHORT-TERM foreign investments turned positive in November, the Bangko Sentral ng Pilipinas (BSP) reported late Friday, hitting a net inflow of $96.59 million.The investments — registered with the central bank through authorized agents and also known as 'hot money' because these can be moved quickly elsewhere to maximize profits from interest rates — reversed from a $529.68-million net outflow in October.The result, however, was lower than the $671.77-million net inflow recorded a year earlier.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase was mainly driven by policy rate cuts along with a reduction in bank reserve requirements.The lower borrowing costs and increased liquidity, he added, will 'again be considerations for the coming months, especially in 2025.'Inflows for the month totaled $1.86 billion, 25.8 percent higher than October's $1.48 billion, but the gross outflows of $1.76 billion were 12.2 percent down from $2.01 billion.The United States remained the main destination for the outflows, accounting for 51.8 percent or $914.20 million.October's inflows mostly went to peso government securities (71.4 percent or $1.33 billion), while the rest was invested in Philippine Stock Exchange-listed securities (28.6 percent, or $531.71 million), particularly banks, holding firms, property, transportation services, and food, beverage and tobacco.The bulk of the short-term investments, or about 90 percent, came from the United Kingdom, Singapore, the United States, Luxembourg and Norway.Year-on-year, inflows were 18.2 percent higher than the $1.57 billion recorded in November last year while outflows were up 95.4 percent from $903.1 million.Year-to-date, hot money inflows were positive at a net $2.59 billion, also rebounding from the $43.66-million net outflow recorded in January-November 2023.Registration of inward foreign investments is optional under foreign exchange (FX) transaction rule
FOREIGNINVESTMENTS HOTMONEY PHILIPPINES ECONOMY INTERESTRATES
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Philippine President Expresses Concern Over Russian Submarine in West Philippine SeaPresident Ferdinand Marcos Jr. has expressed worry over the detection of a Russian attack submarine in the West Philippine Sea (WPS). The submarine, UFA 490, was sighted 80 nautical miles west of Cape Calavite, with the Philippine Navy deploying assets to monitor and address the situation.
Read more »
Philippine Troops Celebrate Christmas in West Philippine Sea OutpostThe Armed Forces of the Philippines (AFP) successfully completed a rotation and resupply (RoRe) mission to nine island features in the West Philippine Sea (WPS), delivering Noche Buena packages to troops stationed there. The missions, conducted from December 3 to 14, involved various naval assets from the AFP’s Western Command and were carried out amidst the presence of Chinese Coast Guard and PLA Navy ships in the vicinity. Rear Admiral Roy Vincent Trinidad, Philippine Navy Spokesperson for WPS, emphasized the importance of the mission in boosting troop morale and ensuring their continued presence in the WPS.
Read more »
Philippine Inflation Rises to 2.5% in November, Core Inflation Up to 2.5% as Food Prices SurgeInflation in the Philippines climbed to 2.5% in November, up from 2.3% in October, fueled by rising food prices following recent storms. Core inflation also rose to 2.5%. The Bangko Sentral ng Pilipinas anticipates inflation to trend closer to the lower end of its target range in the near term, but warns of upside risks for 2025 and 2026.
Read more »
Philippine Regional Fish Ports See November Volume DeclinePhilippine regional ports experienced a decline in fish unloading volumes during November, according to the Philippine Fisheries Development Authority (PFDA). While some ports like General Santos, Navotas, and Iloilo reported lower volumes, others like Bulan, Davao, Lucena, and Zamboanga showed increases.
Read more »
Hot money flows turn negative; risks taggedSHORT-TERM foreign investments turned negative in October after three straight months of net inflows, the Bangko Sentral ng Pilipinas (BSP) reported late on Friday.
Read more »
President Marcos Jr. Urges Philippine Troops to Focus on Defense Duties Amid Political NoisePresident Ferdinand Marcos Jr. instructed troops at the Southern Luzon Command (SOLCOM) to remain focused on their mandate to defend the republic and not be distracted by political squabbles. This comes after former President Rodrigo Duterte's call for the military to withdraw support from the current administration.
Read more »