PHL Net Hot Money Up More Than 3x As of Third Week of July ’16

Foreign capital flows to the Philippines, which has been helping the local currency, remained strong resulting to the more than three times jump in net inflow as of the third week of July.

Data released by the Bangko Sentral ng Pilipinas (BSP) Thursday showed that net foreign portfolio inflow, otherwise known as hot money due to the speed it comes in and out of an economy, as of the week ending July 22, 2016 stood at US$ 1.458 billion, way higher than the US$ 465.44 million in the week ending July 24, 2015.

Total inflows, to date, amounted to US$ 10.21 billion, lower than the US$ 13.12 billion same period last year.

However, the outflows are lower this year at US$ 8.75 million compared to the US$ 12.66 billion during the comparable period in 2015.

BSP Deputy Governor Diwa Guinigungo earlier said he expects the sustained strong capital flows to the Philippines given the negative economic developments abroad.

He said that since economic prospects in the US, Europe and Japan remain bleak investors are looking for higher yields in emerging market economies (EMEs) like the Philippines. (PNA) LGI/JSV/EDS