Sunday, 16 June 2024

Foreign investments via Bangko Sentral ng Pilipinas-authorised agent banks yield net inflows in November

5 min read

Transactions on foreign investments registered with the Bangko Sentral ng Pilipinas (BSP), through authorised agent banks (AAB), in November 2023 recorded net inflows of $673 million resulting from the $1.6 billion gross inflows and the $902 million gross outflows for the month. The recorded net inflows are a reversal of the net outflows posted in October 2023 of $328 million.

The $1.6 billion registered investments for the month are higher by $620 million or by 65.0 % compared to the $954 million recorded in October 2023. During the month, 71.4% of registered investments were in Peso government securities ($1.1 billion), while about 28.6% were in PSE-listed securities ($450 million). Most of these were investments made in: banks; holding firms; property; transportation services; and food, beverage and tobacco, and the remaining, [less than 1%] were in other instruments. Investments for the month mostly came from the United Kingdom, Singapore, the United States, Luxembourg, and Hongkong with a combined share to total at 91.9 %.

The $902 million gross outflows for the month were lower by $381 million (or by 29.7%) compared to the gross outflows recorded for October 2023 ($1.3 billion). The US remains the top destination of outflows, receiving $529 million (or 58.6 %) of total outward remittances.

On a year-on-year basis, registered investments in November 2023 are higher by $520 million (or by 49.4%) than the $1.1 billion recorded in November 2022. Similarly, gross outflows increased by $336 million (or by 59.4 %) vis-à-vis the gross outflows posted in November 2022 ($566 million).

The $673 million net inflows in November 2023 were also larger by 184 million (or by 37.7%) than the $489 million net inflows recorded for the same period a year ago.

Year-to-date transactions (01 January to 30 November 2023) for foreign investments registered with the BSP, through AABs, yielded net outflows of $42 million which were a reversal compared to the $794 million net inflows noted for the same period last year (01 January to 30 November 2022).

Registration of inward foreign investments delegated to AABs 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 AABs 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.

Re-disseminated by The Asian Banker

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