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THE net
outflow of foreign funds known as “hot money,” or
speculative finance, totaled $411.19 million in the
first six months of the year, the Bangko Sentral ng
Pilipinas (BSP) said Thursday.
In
contrast, there was a net inflow of $2.552 billion of
hot money into the country a year earlier, central bank
data show.
In gross
terms, hot-money outflows totaled $5.647 billion from
January to June, against inflows of $5.236 billion.
In June
alone, gross portfolio-investment outflows totaled
$715.44 million even as gross portfolio inflows were
only $576.04 million.
The June
data of portfolio funds reflects the fourth-consecutive
month of net outflows, or foreign funds going out of the
country.
Portfolio funds that flowed out on net basis in January
totaled $236.96 million, followed by net inflows of
$370.87 million in February. This was the only month
when a positive net flow of portfolio money was recorded
so far this year.
On the
other hand, foreign direct investments (FDIs) invested
in local long-term undertakings flowed inward in April
but at a slower pace than a year earlier.
BSP
Governor Amando M. Tetangco Jr. said on Thursday FDIs in
April totaled $269 million versus $327 million a year
earlier.
The net
inflow of foreign investments during the four-month
period raised the FDI numbers more than four times to
$820 million, Tetangco said in a statement.
He
traced this development to “the generally sluggish
economic growth in major investor countries” and to the
“prevailing cautious investor sentiment amid…global
uncertainties.”
There
was also a large one-time foreign investment in a
domestic beverage company that propped up the FDI
numbers in 2007, Tetangco said.
Tetangco
said there were far more equity placements in the first
four months that totaled $299 million compared with
withdrawals of $112 million.
Reinvested earnings that represent profits foreign
investors plow back into their ventures instead of
taking the money back to their principals abroad stood
at $131 million, down from $142 million.
The
other capital account, representing borrowing or lending
transactions between FDIs and their local subsidiaries
or affiliates, also posted a net inflow of $390 million
versus $573 million last year. |
