Philippines foreign portfolio investment transactions yield net outflows in May 2020
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E-mail Xinhua, June 25, 2020
MANILA, June 25 (Xinhua) -- More money flowed out of the Philippines in May 2020, the country's central bank said on Thursday.
Bangko Sentral ng Pilipinas (BSP)-registered foreign portfolio investments for May 2020 yielded net outflows of 1.0 billion U.S. dollars resulting from the 1.5 billion U.S. dollars gross outflows and 486 million U.S. dollars gross inflows for the month.
"This is larger than the recorded net outflows of 660 million U.S. dollars in April," the BSP said in a statement.
It added that the 486 million U.S. dollars registered investments for the month reflected a 22.4 percent decline from the 627 million U.S. dollars figure in April 2020 and is also the lowest recorded monthly gross inflows since November 2009.
The BSP said about 88.3 percent of investments registered were in Philippine Stock Exchange (PSE)-listed securities pertaining mainly to property companies, holding firms, banks, retail companies and telecommunication firms while the remaining 11.8 percent went to investments in peso-dominated government securities.
According to the BSP, Britain, the United States, Singapore, China's Hong Kong and Luxembourg were the top five investor countries and regions for the month, with combined share to total at 88.1 percent.
Outflows for May, which hit 1.5 billion U.S. dollars, were higher by 15.9 percent compared to the level recorded for April which reached 1.3 billion U.S. dollars, the BSP said, adding that the United States received 47.5 percent of total outflows.
The BSP said year-to-date -- January 1 to May 29, 2020 -- foreign portfolio investment transactions yielded net outflows of 3.1 billion U.S. dollars resulting from the 7.8 billion U.S. dollars gross outflows and 4.7 billion U.S. dollars gross inflows for the said period.
Registration of inward foreign investments with the BSP is optional under the liberalized rules on foreign exchange transactions.
The issuance of a BSP registration document entitles the investor or his representative to buy foreign exchange from authorized agent banks an/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of earnings that accrue on the registered investment.
Without such registration, the BSP said the foreign investor can still repatriate capital and remit earnings on his investment but the foreign exchange will have to be sourced outside the banking system. Enditem
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