MANILA – The Philippines posted a net inflow of foreign portfolio investments in the week ending April 14, 2017 amid a shortened workweek in observance of the Holy Week.
Data released by the Bangko Sentral ng Pilipinas (BSP) Wednesday showed that foreign portfolio investments, or hot money – called as such based on the speed it comes in and out of the economy – posted a net inflow of US$211.15 million at the end of the second week of the month.
This is a reversal from the US$97.96 million net outflow in the previous week and higher than the US$12.59 million in the week ending April 15, 2016.
This was registered after inflows were more than twice the outflows at US$408.54 million and US$197. 39 million, respectively.
However, as of end-April 14, 2017 hot money posted a net outflow of US$454.04 million, a turnaround from the US$371.08 million in comparable week in 2016.
Earlier, BSP Deputy Governor Diwa Guinigundo said recovery in hot money as well as foreign direct investments (FDIs) was expected this year as “uncertainties appear to be easing a bit”.
”While we remain vigilant over the global economy which the IMF (International Monetary Fund) believes is better poised for higher growth in 2017, we expect some recovery in both the current account and the financial account, particularly FDI and foreign portfolio investments as the uncertainties appear to be easing a bit,” he added.