Foreign investments registered with BSP yield net inflows in October
Transactions on foreign investments registered with the Bangko Sentral ng Pilipinas (BSP), through AABs (Approved Agent Banks) in October recorded net inflows of $83 million, a reversal from the $367 million net outflows recorded in September.
This resulted from the $645 million gross inflows and $561 million gross outflows for the month.
The $645 million registered investments in October reflected a decrease of 27.7 percent (or by $247 million) compared to the $892 million registered in September.
Majority of investments (or 73 percent) registered were in PSE-listed securities [investments mainly in: (a) property; (b) banks; (c) holding firms; (d) food, beverage and tobacco; and (e) telecommunications].
The remaining went to investments in Peso government securities (27 percent) and other instruments (less than 1 percent).
Investments for the month mostly came from the United Kingdom; United States (US); Singapore; Luxembourg; and Hong Kong with combined share to total at 84.4 percent.
The $561 million gross outflows for the month were lower by 55.4 percent (or by $698 million) than the $1.3 billion recorded in September. The US received 67.7 percent of total outward remittances.
Year-on-year, registered investments in October decreased by 32.1 percent (or by $305 million) from the $950 million recorded in October 2021.
Gross outflows were also lower by 52.1 percent (or by $610 million) than the outflows recorded for the same period last year ($1.2 billion).
The $83 million net inflows in October 2022 were a reversal from the $221 million net outflows recorded in October 2021.
Year-to-date transactions ( January 1 to October 31) for foreign investments registered with the BSP, through authorized agent banks yielded net inflows of $305 million, a turnaround from the $680 million net outflows noted for the same period last year ( January 1 to October 31 2021).
Registration of inward foreign investments delegated to authorized agent banks by the BSP is optional under the rules on foreign exchange transactions.
It is required only if the investor or its representative will purchase FX from authorized agent banks and/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 foreign investor can still repatriate capital and remit earnings on its investment but the FX will have to be sourced outside the banking system. BSP
