Foreign investments registered with BSP yield net inflows in November 2022

Transactions on foreign investments registered with the BSP through AABs in November 2022 recorded net inflows of US$489 million, more than five (5) times larger compared to the US$83 million net inflows recorded in October 2022.

This resulted from the US$1.1 billion gross inflows and US$566 million gross outflows for the month.

The US$1.1 billion registered investments in November 2022 reflected an increase of 63.6 percent (or by US$410 million) compared to the US$645 million registered in October 2022.

Majority of investments (or 55.1 percent) registered were in PSE-listed securities (investments mainly in: banks, holding firms, property, food, beverage & tobacco and telecommunications), while the remaining went to investments in Peso government securities (44.8 percent) and other instruments (less than 1.0 percent).

Investments for the month mostly came from the United Kingdom, United States, Netherlands, Luxembourg and Singapore, with combined share to total at 83.5 percent.

The US$566 million gross outflows for the month were slightly larger by 0.8 percent (or by US$5 million) than the US$561 billion recorded in October 2022.  The US received 71.7 percent of total outward remittances.

Year-on-year, registered investments in November 2022 decreased by 17.9 percent (or by US$230 million) from the US$1.3 billion recorded in November 2021, while gross outflows were also lower by 51.8 percent (or by US$609 million) than the outflows recorded for the same period last year (US$1.2 billion).

The US$489 million net inflows in November 2022 were larger compared to the US$110 million net inflows recorded in November 2021.

Year-to-date transactions (1 January to 30 November 2022) for foreign investments registered with the BSP, through AABs, yielded net inflows of US$794 million, a turnaround from the US$570 million net outflows noted for the same period last year (1 January to 30 November 2021).

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.

[i]   Formerly titled as BSP-registered foreign portfolio investments; These investments refer to the following inward foreign investments registered with AABs: PSE-listed securities; Peso-denominated government securities; Peso time deposits with banks with minimum tenor of 90 days; other Peso debt instruments; unit investment trust funds; and other instruments such as Exchange Traded Funds and Philippine Depositary Receipts.