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“HOT
money,” or portfolio funds, that bolted from the
Philippines and invested elsewhere totaled $5.9 billion
from January up to mid-July this year, outpacing inflows
of $5.5 billion and resulting in a net outflow of $414
million.
In the
first two weeks of July, however, there was a net inflow
of $3.27 million from gross inflows of $261 million and
gross outflows of $258 million.
Bangko
Sentral ng Pilipinas officials said the July inflows
were placements a week before the Monetary Board
adjusted its policy rates upward by 50 basis points as a
countermeasure against inflation.
An
interest-rate hike tends to encourage fund managers to
stay invested in the Philippines as yields on financial
instruments inflate as well but on the whole, portfolio
investments across Asia, including the Philippines, have
weakened significantly due to risk aversion, according
to BSP Governor Amando Tetangco Jr.
Spiraling oil and other commodity prices and prospects
of weaker local corporate earnings tended to discourage
fund managers from plunking significant portions of
their holdings in the local markets, he added. |
