$1.2-B Outflows In April --- BSP

The Bangko Sentral ng Pilipinas (BSP) reported net outflows of US$312 million resulting from US$1.2 billion gross outflows and US$914 million gross inflows for April, higher than the US$236 million net outflows recorded in March 2024.

The US$312 million net outflows in April 2024 are smaller compared to the net outflows recorded for the same period a year ago (US$352 million).

The US$914 million registered investments for the month are lower by US$494 million (or by 35.1 percent) compared to the US$1.4 billion recorded in March 2024.

During the month, 59.5 percent of registered investments were in PSE-listed securities (US$544 million), most of which were investments made in banks, holding firms, property, transportation services, and food, beverage, and tobacco, while the remaining 40.5 percent were in Peso government securities (US$370 million).

Investments for the month mostly came from the United States, the United Kingdom, Singapore, Luxembourg, and Hong Kong with a combined share of 87.9 percent.

The US$1.2 billion gross outflows for the month were lower by US$418 million (or by 25.4 percent) compared to the gross outflows recorded for March 2024 (US$1.6 billion). The US remains the top destination of outflows, receiving US$527 million (or 43.0 percent) of total outward remittances.

Year-on-year, registered investments in April 2024 are higher than the US$713 million recorded in April 2023 (by US$201 million or 28.2 percent), while gross outflows increased by US$161 million (or by 15.1 percent) vis-à-vis the gross outflows posted in April 2023 (US$1.1 billion).

The US$312 million net outflows in April 2024 are smaller compared to the net outflows recorded for the same period a year ago (US$352 million).

Year-to-date transactions (01 January to 30 April 2024) for foreign investments registered with the BSP, through authorized agent banks, yielded net inflows of US$65 million, a turnaround compared to the US$680 million net outflows noted for the same period last year (01 January to 30 April 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.