Philippines lures foreign investors: Hot money surges in February

The Philippines registered a sharp turnaround in foreign investment flows in February, with hot money inflows surging to $689.27 million after a net outflow in January.

This marks a significant shift from the previous month’s $75.83 million net outflow and reflects renewed investor confidence in the Philippine market. The increase is also higher compared to February 2023, which saw net withdrawals of $549.28 million.

Data from the Bangko Sentral ng Pilipinas (BSP) revealed that a significant portion of the inflows, roughly 61.4% or $951 million, went towards peso-denominated government securities. This trend suggests investors are prioritizing stability and lower risk options.

The remaining 38.6%, amounting to $598 million, flowed into listed securities on the Philippine Stock Exchange. These investments focused on sectors like banking, transportation, and established companies in food and beverage.

The BSP reported that a combined 89.1% of the hot money inflows originated from investors in the United Kingdom, Singapore, United States, Luxembourg, and Hong Kong.

While the Philippines attracted significant foreign investments in February, the US remained the primary destination for outward remittances. Investors repatriated $485 million, representing 56.4% of all outgoing funds.

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