Net foreign investment outflows recorded in March 2024

In March 2024, the Bangko Sentral ng Pilipinas (BSP) reported a significant shift in the flow of foreign investments*, with net outflows totaling US$236 million.

The change follows February’s robust net inflows of US$689 million, illustrating a volatile financial environment.

During March, the total registered foreign investments reached US$1.4 billion, a decrease of 9.1% from February’s US$1.5 billion.

Investments were primarily concentrated in PSE-listed securities and Peso government securities, with notable contributions from investors in the United Kingdom, Singapore, the United States, Switzerland, and Luxembourg, accounting for 83.6% of the total.

The month saw substantial gross outflows of US$1.6 billion, an increase of 91.4% over February’s figures, dominated by remittances to the United States, which received 53.9% of these outflows.

This marked rise in outflows contrasts sharply with the previous year’s figures, indicating a shift in investor behavior and confidence.

Comparatively, year-on-year data shows an increase in both registered investments and gross outflows from March 2023, suggesting an increasing trend in capital mobility.

Despite this, year-to-date figures for 2024 reflect a positive net inflow of US$377 million, a turnaround from the US$328 million net outflows recorded from January to March 2023.

The BSP allows foreign investments to be registered through authorized agent banks, which facilitates easier repatriation of capital and remittance of earnings.

However, registration is not mandatory unless foreign exchange for these purposes is sourced from within the domestic banking system.

This latest financial movement underscores the dynamic nature of global investment flows and the significant impact of external economic factors on local financial markets.

As the global economy continues to face uncertainties, these shifts highlight the importance of monitoring foreign investment trends closely for future economic planning and stability.

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*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.