BSP Reports $153 Million In Investments For August

The Bangko Sentral ng Pilipinas (BSP) has disclosed that transactions involving foreign investments through authorized agent banks in August 2023 resulted in net inflows of US$153 million.

The net inflows for August were smaller than those reported in July 2023, which amounted to US$962 million.

This was the outcome of US$1.4 billion in gross inflows and US$1.3 billion in gross outflows for the month. Notably, the net inflows for August were smaller than those reported in July 2023, which amounted to US$962 million.

The US$1.4 billion in registered investments for August represented an 8.6 percent decrease compared to the US$1.6 billion recorded in July 2023.

This was the outcome of US$1.4 billion in gross inflows and US$1.3 billion in gross outflows for the month. Notably, the net inflows for August were smaller than those reported in July 2023, which amounted to US$962 million.

The US$1.4 billion in registered investments for August represented an 8.6 percent decrease compared to the US$1.6 billion recorded in July 2023.

The majority of these investments were in PSE-listed securities, accounting for 74.2 percent of the total. These investments were primarily in banks, property, holding firms, food, beverage, tobacco, and transportation services.

The remainder of the investments were in Peso government securities (US$372 million) and other instruments (less than 1 percent).

The primary sources of investments in August were Japan, the United Kingdom, the United States, Luxembourg, and Singapore, accounting for a combined share of 88.9 percent.

Gross outflows for August amounted to US$1.3 billion, representing an increase of 109.5 percent compared to the gross outflows recorded in July 2023 (US$614 million). The United States remained the top destination for outflows, receiving 59.2 percent of total outward remittances.

Year-on-year, registered investments in August 2023 increased significantly, up by 82.0 percent from the US$792 million recorded in August 2022.

Gross outflows also saw an increase of 46.6 percent compared to August 2022, totaling US$878 million. The US$153 million net inflows in August 2023 marked a reversal from the US$86 million net outflows reported for the same period a year ago.

For the year-to-date period from January 1 to August 31, 2023, foreign investments registered with the BSP through authorized agent banks yielded net inflows of US$311 million.

This figure was smaller compared to the US$589 million in net inflows noted for the same period in the previous year (January 1 to August 31, 2022).

It is important to note that the registration of inward foreign investments with the BSP through authorized agent banks is optional under the rules on foreign exchange (FX) transactions.

It becomes necessary only if the investor or its representative plans to purchase FX from these banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of earnings generated from the registered investment.

Without such registration, the foreign investor can still repatriate capital and remit earnings, but the FX will have to be sourced outside the banking system.

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