May Registers $43 Million Net Inflows

Transactions on foreign investments registered with the Bangko Sentral ng Pilipinas (BSP), through authorized agent banks, recorded net inflows of US$43 million in May 2024.

Year-on-year, registered investments in May 2024 were 24.6 percent higher than the US$845 million recorded in May 2023.

This resulted from US$1.1 billion in gross inflows and US$1.0 billion in gross outflows for the month.

This is a significant reversal from the US$312 million net outflows posted in April 2024. The US$1.1 billion in registered investments for the month represents a 15.2 percent increase (US$139 million) compared to the US$914 million recorded in April 2024.

During May, 65.0 percent of registered investments were in PSE-listed securities (US$685 million), with investments primarily in banks, holding firms, property, transportation services, and mining.

Additionally, 35.0 percent were in Peso government securities (US$368 million), with the remainder in other instruments.

Investments for the month predominantly came from the United Kingdom, the United States, Singapore, Luxembourg, and Norway, collectively accounting for 86.1 percent of the total.

The US$1.0 billion in gross outflows for the month were 17.6 percent lower (US$216 million) than the gross outflows recorded in April 2024 (US$1.2 billion). The US remained the top destination for outflows, receiving US$575 million (57.0 percent) of total outward remittances.

Year-on-year, registered investments in May 2024 were 24.6 percent higher than the US$845 million recorded in May 2023 (an increase of US$208 million). Meanwhile, gross outflows increased by 4.2 percent (US$41 million) compared to May 2023 (US$969 million).

The US$43 million net inflows for May 2024 marked an improvement from the US$124 million net outflows recorded for the same period a year ago.

Year-to-date transactions (January 1 to May 31, 2024) for foreign investments registered with the BSP, through authorized agent banks, yielded net inflows of US$108 million. This is a turnaround from the US$805 million net outflows noted for the same period in the previous year (January 1 to May 31, 2023).

Registration of inward foreign investments with 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 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.