MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said the decline in hot money brought about by the crisis in the euro zone is temporary and that these portfolio inflows would start pouring in again once investors realize that the Philippines is a safe haven for their funds.
“I believe it will catch up in due time. Now everybody is going crazy. They need to digest economic and market realities,” said BSP Deputy Governor Diwa Guinigundo.
He said that eventually investors would realize that the Philippines has a fundamentally sound economy.
“We have a very strong balance of payments. Banking system is very stable. Fiscal condition is improving. Exchange rate is very stable. We did not experience any slowdown in 2011. Inflation rate is manageable and continues to come down,” said Guinigundo.
Hot money or foreign investments in stocks, government securities and peso-denominated assets yielded a net inflow of $106 million in May, lower than the $333 million recorded a month ago and the $364.18 million a year ago, as uncertainties in the euro zone continue to send jitters to investors.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that registered investments were almost at the same level as April at $1.5 billion.
Total inflows amounted to $1.524 billion while outflows stood at $1.418 billion, resulting in a net inflow of $106 million.
“Outflows on the other hand, rose to $1.4 billion or by 23.9 percent from last month’s level due to growing concerns from last month’s level due to growing concerns about Greece and Spain,” the BSP said.
Funds went to peso-denominated government securities and shares listed in the stock market, with net foreign exchange inflows of $87 million and $69 million, respectively.
On the other hand, money market instruments resulted in net outflows of $49 million.
The main beneficiaries of investments in PSE-listed shares were holding firms, garnering $337 million in investments; diversified industrial sector with $228 million; banks with $183 million; property companies with $138 million; and telecommunications companies with $109 million.
Investors came from United States, United Kingdom, Singapore, Hong Kong and Luxembourg. The United States continued to the main beneficiary of outflows from these investments.
Hot money is one of the indicators of investor confidence in an economy but they move very quickly in and out of the markets which is why they are called hot money. –Iris C. Gonzales (The Philippine Star)
March –
IT’S WOMEN’S MONTH!
“Respect and support women
every day of the year/s!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
Monthly Observances:
Women’s Role in History Month
Weekly Observances:
Week 1: Environmental Week;
Women’s Week
Week 3: Philippine Industry and “
Made-in-the-Philippines Products Week
Last Week: Protection and Gender-Fair Treatment
of the Girl Child Week
Daily Observances:
March 8: Women’s Rights and
International Peace Day;
National Women’s Day
March 4: Employee Appreciation Day
March 15: World Consumer Rights Day
March 18: Global Recycling Day
March 21: International Day for the Elimination
of Racial Discrimination
March 23: International Day for the Right to the Truth
Concerning Gross Human Rights Violations
and for the Dignity of Victims
March 25: International Day of Remembrance of the
Victims of Slavery and the Transatlantic Slave Trade
March 27: Earth Hour
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
