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BSP: $235M ‘hot money’ exits PH in June

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BSP: $235M ‘hot money’ exits PH in June

FOREIGN portfolio investments worth $235.38 million left the Philippines in June, raising the year-to-date net outflows as the coronavirus disease 2019 (Covid-19) pandemic and other developments continue to bring uncertainties, according to the Bangko Sentral ng Pilipinas (BSP).

Data released by the central bank on Thursday showed, however, that net outflows of these investments, or “hot money” — so called because of how easily these enter and exit the economy — were smaller than May’s $1-billion net outflows, but wider than the $36.03 million in June 2019.

Last month’s amount resulted from inflows of $1.01 billion and outflows of $1.25 billion.

In a statement, the BSP said the $1.01 billion registered investments were more than twice the $486.26 million posted in May.

Hot money stayed in the negative territory in the first six months of the year, with net outflows at $3.3 billion, 357.69 percent bigger than the year-earlier figure.

The BSP said the year-to-date net outflows were “brought about by uncertainties due, among others, to the impact of the Covid-19 pandemic to the global economy and financial system, and other key events earlier in the year.”