Foreign investments through registered banks recorded net inflows of $43 million in May, resulting from the $1.1 billion gross inflows and the $1.0 billion gross outflows for the month, the Bangko Sentral ng Pilipinas (BSP) said Friday. This is a reversal from the $312 million net outflows posted in April 2024.
The $1.1 billion registered investments for the month are higher by $139 million (or by 15.2%) compared to the $914 million recorded in April this year. During the month, 65.0% of registered investments were in PSE-listed securities ($685 million) [most of which were investments made in: (a) banks; (b) holding firms; (c) property; (d) transportation services; and (e) mining], with 35.0% in Peso government securities ($368 million) and the remaining [less than one (1) percent] were in other instruments.
Investments for the month mostly came from the United Kingdom, the United States (US), Singapore, Luxembourg, and Norway, with a combined share of 86.1%.
The $1.0 billion gross outflows for the month were lower by $216 million (or 17.6%) compared to the gross outflows recorded for April 2024 ($1.2 billion). The US remains the top destination of outflows, receiving $575 million (or 57.0%) of total outward remittances.
Year-on-year, registered investments in May 2024 are higher than the US$845 million recorded in May 2023 (by $208 million or 24.6%), while gross outflows increased by $41 million (or by 4.2%) vis-a-vis the gross outflows recorded for May 2023 ($969 million). The $43 million net inflows for May 2024 improved from the $124 million net outflows recorded for the same period a year ago.
Year-to-date transactions (January 1 to May 31) for foreign investments registered with the BSP through authorized agent banks yielded net inflows of $108 million, a turnaround from the $805 million net outflows noted for the same period in the previous year (January 1 to May 31, 2023).
Under the rules on foreign exchange (FX) transactions, registration of inward foreign investments delegated to authorized agent banks by the BSP is optional. 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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