BSP reports higher net outflows in April 2024

The Bangko Sentral ng Pilipinas (BSP) reported net outflows of $312 million for foreign investments registered through authorized agent banks* in April 2024.

The figure marks an increase from the $236 million net outflows recorded in March 2024.

Foreign investments registered in April 2024 totaled $914 million, a decrease of $494 million (35.1 percent) compared to March 2024’s $1.4 billion. Of these investments, 59.5 percent were in PSE-listed securities ($544 million), primarily in banks, holding firms, property, transportation services, and the food, beverage, and tobacco sectors.

The remaining 40.5 percent ($370 million) were invested in peso government securities. The majority of these investments came from the United States, the United Kingdom, Singapore, Luxembourg, and Hong Kong, accounting for 87.9 percent of the total.

Gross outflows for April 2024 amounted to $1.2 billion, a reduction of $418 million (25.4 percent) from March 2024’s $1.6 billion. The United States remained the primary destination for these outflows, receiving $527 million (43.0 percent) of the total.

Comparing year-on-year data, registered investments in April 2024 increased by $201 million (28.2 percent) from $713 million in April 2023. Gross outflows also rose by $161 million (15.1 percent) from April 2023’s $1.1 billion. The net outflows for April 2024 were $312 million, lower than the $352 million recorded in April 2023.

From January to April 2024, transactions registered with the BSP through authorized agent banks yielded net inflows of $65 million. This is a significant turnaround from the $680 million net outflows during the same period in 2023.

BSP’s registration of inward foreign investments through authorized agent banks is optional under foreign exchange (FX) transaction rules. Registration is required only if the investor or its representative will purchase FX from authorized agent banks for repatriation of capital and remittance of earnings.

Without such registration, investors can still repatriate capital and remit earnings, but the FX must be sourced outside the banking system.

* These investments refer to the following inward foreign investments registered with authorized agent banks: PSE-listed securities; Peso-denominated government securities; Peso time deposits with banks with minimum tenor of 90 days; other Peso debt instruments; unit investment trust funds; and other instruments such as Exchange Traded Funds and Philippine Depositary Receipts. In addition, registration of said investments with the BSP, through the authorized agent banks, may not necessarily coincide with either trade or settlement date of the underlying transaction, and thus, such registration may be effected even after the actual foreign investment transaction has long been completed.