Transactions on foreign investments registered with the BSP, through authorized agent banks, in August 2024 recorded net inflows of US$533.95 million resulting from the US$1,370.72 million gross inflows and the gross outflows of US$836.78 million for the month. The recorded net inflows are lower by US$849.31 million (or by 61.4 percent) than the net inflows posted in July 2024 (US$1,383.25 million).
The US$1,370.72 million registered investments for the month are lower by US$1,061.84 million (or by 43.7 percent) compared to the gross inflows recorded in July 2024 (US$2,432.57 million). During the month, 51.2 percent of registered investments were in PSE-listed securities (US$701.83 million) [most of which were investments in: (a) banks; (b) transportation services; (c) holding firms; (d) property; and (e) food, beverage & tobacco], with the remaining 48.8 percent in Peso GS (US$668.89 million). Investments for the month mostly came from: Singapore; the United States (US); the United Kingdom; Luxembourg; and Malaysia with combined share to total at 81.5 percent.
The US$836.78 million gross outflows for the month were lower by US$212.54 million (or by 20.3 percent) compared to the gross outflows recorded for July 2024 (US$1,049.31 million). The US remains to be the top destination of outflows, receiving US$436.33 million (or 52.1 percent) of total outward remittances.
Year-on-year, registered investments in August 2024 are lower by US$69.86 million (or by 4.8 percent) than the US$1,440.59 million recorded in August 2023, while gross outflows decreased by US$450.35 million (or by 35.0 percent) vis-a-vis the gross outflows recorded for August 2023 (US$1,287.12 million). The US$533.95 million net inflows for August 2024 are larger by US$380.49 million (or by 247.9 percent) than the US$153.46 million net inflows recorded for the same period a year ago.
Year-to-date transactions (01 January to 31 August 2024) for foreign investments registered with the BSP, through authorized agent banks, yielded net inflows of US$1,998.04 million, larger by US$1,687.27 million (or 542.9 percent) than the US$310.77 million net inflows noted for the same period last year (01 January to 31 August 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 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.
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