BSP Reports US$530 Million Foreign Investment Net Outflows in October

Foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) through authorized agent banks recorded net outflows of USD529.68 million (approximately PHP29.83 billion) in October 2024.

This reversed the net inflows of USD1.03 billion seen in September 2024, driven by USD2.01 billion in gross outflows and USD1.48 billion in gross inflows for the month.

The gross inflows in October were 41.5 percent lower than the USD2.53 billion recorded in the previous month. About 54.5 percent of these investments, or USD807.08 million, were channeled into Philippine Stock Exchange (PSE)-listed securities, particularly in banks, holding firms, transportation services, property, and food, beverage, and tobacco sectors.

Peso-denominated government securities accounted for the remaining 45.5 percent, totaling USD672.79 million. The majority of investments originated from the United Kingdom, Singapore, the United States, Luxembourg, and Malaysia, representing 87.8 percent of the total inflows.

On the other hand, gross outflows increased by 33.4 percent from September’s USD1.51 billion to USD2.01 billion. The United States remained the top destination for these outflows, receiving 44.2 percent or USD889.06 million of the total.

Year-on-year, registered investments in October 2024 were up by 55.1 percent, amounting to USD1.48 billion, compared to USD954.38 million in October 2023. Gross outflows also rose 56.7 percent from USD1.28 billion in the same period last year.

Net outflows for October 2024 were higher by 61.4 percent, compared to the USD328.19 million recorded in October 2023.

Despite the monthly net outflows, year-to-date transactions from January to October 2024 showed a positive trend, registering net inflows of USD2.49 billion, a stark improvement from the USD715.43 million net outflows during the same period in 2023.

The BSP clarified that the registration of foreign investments with authorized agent banks is optional under current foreign exchange rules.

It is only required if investors seek to purchase foreign exchange from the banking system for capital repatriation or earnings remittance.

Without registration, investors must source foreign exchange outside the banking system.

These registered investments encompass a range of assets, including PSE-listed securities, Peso-denominated government securities, Peso time deposits with a minimum tenor of 90 days, and other instruments like exchange-traded funds and Philippine Depositary Receipts.

While October’s figures highlight volatility in foreign investment flows, the year-to-date improvements underscore sustained investor confidence in the Philippine economy amidst global economic uncertainties.