Foreign Investments Higher By $1.38 Billion In July

Transactions on foreign investments registered with the BSP, through authorized agent banks, in July 2024 recorded net inflows of US$1,383.25 million, resulting from the US$2,432.57 million gross inflows and US$1,049.31 million gross outflows for the month.

Investments for the month mostly came from the United Kingdom, the United States (U.S.), Singapore, Luxembourg, and Norway, with a combined share of 93.7 percent of the total.

This marks a reversal from the US$27.26 million net outflows posted in June 2024.

The US$2,432.57 million registered investments for the month are higher by US$1,389.93 million (or by 133.3 percent) compared to the US$1,042.64 million recorded in June 2024.

During the month, 71.3 percent of registered investments were in Peso government securities (US$1,734.89 million), with 28.7 percent in PSE-listed securities (US$697.67 million) [most of which were investments made in: (a) banks; (b) holding firms; (c) property; (d) transportation services; and (e) food, beverage & tobacco] and the remaining (less than 1.0 percent) were in other instruments.

Investments for the month mostly came from the United Kingdom, the United States (U.S.), Singapore, Luxembourg, and Norway, with a combined share of 93.7 percent of the total.

The US$1,049.31 million gross outflows for the month were lower by US$20.59 million (or by 1.9 percent) compared to the gross outflows recorded for June 2024 (US$1,069.90 million).

The U.S. remains the top destination of outflows, receiving US$475.35 million (or 45.3 percent) of total outward remittances.

Year-on-year, registered investments in July 2024 were higher by US$856.05 million (or by 54.3 percent) than the US$1,576.52 million recorded in July 2023, while gross outflows increased by US$434.38 million (or by 70.6 percent) compared to the gross outflows recorded for July 2023 (US$614.93 million).

The US$1,383.25 million net inflows for July 2024 were larger than the US$961.58 million net inflows recorded for the same period a year ago.

Year-to-date transactions (01 January to 31 July 2024) for foreign investments registered with the BSP, through authorized agent banks, yielded net inflows of US$1,464.09 million, larger by US$1,306.79 million (or 830.7 percent) than the US$157.30 million net inflows noted for the same period last year (01 January to 31 July 2023).

Registration of inward foreign investments delegated to authorized agent banks 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 authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for the 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.