MANILA — The inflow of foreign portfolio investments, also called “hot money” because they can come in and out of an economy, remain in positive territory as of the second week of August 2018.
Data released by the Bangko Sentral ng Pilipinas (BSP) Thursday showed that as of the week ending August 10, hot money registered a net inflow amounting to USD569.73 million, a turn-around from the USD152.75 million net outflow in the week that ended August 11, 2017.
The net inflow came about after total inflows reached USD10.104 billion, higher than the USD9.535 billion outflows.
On the other hand, total inflows to date is lower than the USD10.219 billion same week in 2017.
However, outflows to date are lower than the USD10.372 billion same week last year.
In the past, hot money posted net outflows because of volatilities due to concerns overseas, among others. These external concerns include the anticipated hike in the Federal Reserve rates.
Last year, the Federal Open Market Committee (FOMC) raised the Fed’s key rates three times, at 25 basis points in each decision. By December 2017, the Fed’s benchmark interest rate stood at 1.25-1.5 percent.
Last year, hot money in the Philippines registered a net outflow of USD205.03 million, lower than the USD0.9 million outflow projected by monetary officials. (Joann Villanueva/PNA)
