Foreign investments registered with the Bangko Sentral ng Pilipinas through authorized agent banks posted net inflows of USD1.38 billion in July, helped by funds invested in government securities and stocks listed on the Philippine Stock Exchange.
The net inflow in July is a marked reversal from the USD27.7 million net outflow in June.
BSP data showed gross inflow of USD2.43 billion in July while gross outflow stood at USD1.05 billion.
The gross inflows in July represent a significant increase of USD1.39 billion compared with the USD1.04 billion recorded in June. Of the July inflows, 71 percent went to peso-denominated government securities, totaling USD1.73 billion, while 29 percent were invested in PSE-listed securities, amounting to USD697.7 million. The balance was placed in other instruments.
Majority of these investments came from the United Kingdom, the United States, Singapore, Luxembourg, and Norway, which collectively contributed 94 percent of the total.
Gross outflows in July were USD1.05 billion, down from the USD1.07 billion recorded in June. The United States remained the top destination for outflows, receiving USD475.4 million.
Compared to July 2023, registered investments in July 2024 were higher by 54 percent than the USD1.58 billion. Gross outflows also increased by 71 percent from USD614.93 million in July 2023. The net inflows of USD1.38 billion in July were substantially higher than the USD961.6 million posted in the same month last year.
Due to the net inflow in July, the value of seven-month transactions have yielded net inflows of USD1.46 billion, a substantial increase compared with the USD157.3 million net inflows during the same period in 2023.
The registration of inward foreign investments with the BSP, through authorized agent banks, is optional under foreign exchange rules. It is required only if the investor or their representative plans to purchase foreign exchange from authorized banks for capital repatriation and earnings remittance. Without registration, investors can still repatriate capital and remit earnings, but must source foreign exchange outside the banking system.
