BSP-registered foreign investments yield net outflows in March

(From Bangko Sentral ng Pilipinas Facebook)
(From Bangko Sentral ng Pilipinas Facebook)

Transactions on foreign investments registered with the BSP, through authorized agent banks, in March 2024 recorded net outflows of US$236 million resulting from the US$1.6 billion gross outflows and US$1.4 billion gross inflows for the month. This is a reversal from the US$689 million net inflows recorded in February 2024.

The US$1.4 billion registered investments for the month are lower by US$140 million (or by 9.1 percent) compared to the US$1.5 billion recorded in February 2024. During the month, 56.7 percent of registered investments were in PSE-listed securities (US$798 million) [most of which were investments made in: (a) banks; (b) holding firms; (c) property; (d) transportation services; and (e) food, beverage and tobacco], while the remaining 43.3 percent were in in Peso government securities (US$610 million). Investments for the month mostly came from the United Kingdom, Singapore, United States (US), Switzerland, and Luxembourg with a combined share of 83.6 percent.

The US$1.6 billion gross outflows for the month were higher by US$785 million (or by 91.4 percent) compared to the gross outflows recorded for February 2024 (US$859 million). The US remains to be the top destination of outflows, receiving US$887 million (or 53.9 percent) of total outward remittances.

Year-on-year, registered investments in March 2024 are higher than the US$1.3 billion recorded in March 2023 (or by US$152 million or 12.1 percent), while gross outflows increased by US$318 million (or by 24.0 percent) vis-à-vis the gross outflows posted in March 2023 (US$1.3 billion).  The US$236 million net outflows in March 2024 are larger compared to the net outflows recorded for the same period a year ago (US$70 million).

Year-to-date transactions (01 January to 31 March 2024) for foreign investments registered with the BSP, through authorized agent banks, yielded net inflows of US$377 million, a turnaround compared to the US$328 million net outflows noted for the same period last year (01 January to 31 March 2023).

Registration of inward foreign investments delegated to authorized agent banks by the BSP is optional under the rules on foreign exchange (FX) 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. PR

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph