Foreign investments registered with the Bangko Sentral ng Pilipinas (BSP), through authorized agent banks[i], yield net inflows in November 2024

Transactions on foreign investments registered with the BSP, through authorized agent banks, in November 2024 recorded net inflows of US$96.59 million resulting from the US$1,861.41 million gross inflows and the gross outflows of US$1,764.82 million for the month. The recorded net inflows are a reversal from the US$529.68 million net outflows posted in October 2024.

The US$1,861.41 million registered investments for the month are higher by US$381.54 million (or by 25.8 percent) compared to the gross inflows recorded in October 2024 (US$1,479.87 million). During the month, 71.4 percent of registered investments were in in Peso GS (US$1,329.70 million) with the remaining 28.6 percent in PSE-listed securities (US$531.71 million) [most of which were investments in: (a) banks; (b) holding firms; (c) property; (d) transportation services; and (e) food, beverage & tobacco]. Investments for the month mostly came from: the United Kingdom; Singapore; the United States (US); Luxembourg; and Norway with combined share to total at 90.0 percent.

The US$1,764.82 million gross outflows for the month were lower by US$244.73 million (or by 12.2 percent) compared to the gross outflows recorded for October 2024 (US$2,009.55 million). The US remains to be the top destination of outflows, receiving US$914.20 million (or 51.8 percent) of total outward remittances.

Year-on-year, the registered investments in November 2024 amounting to US$1,861.41 million are higher by US$286.55 million (or by 18.2 percent) than the US$1,574.87 million recorded in November 2023, while gross outflows increased by US$861.72 million (or by 95.4 percent) vis-a-vis the gross outflows this time last year (US$903.10 million).  The net inflows of US$96.59 million for November 2024 are lower by USS$575.18 million (or by 85.6 percent) compared to the net inflows recorded for the same period a year ago (US$671.77 million).

Year-to-date transactions (01 January to 30 November 2024) for foreign investments registered with the BSP, through authorized agent banks, yielded net inflows of US$2,590.71, a marked improvement compared to the US$43.66 million net outflows noted for the same period last year (01 January to 30 November 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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^[i]  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.