Foreign Investments Registered with BSP yield net outflows in June 2022

Transactions on foreign investments registered with the BSP, through AABs in June 2022 recorded net outflows of US$342 million, larger compared to the US$270 million net outflows recorded in May 2022. This resulted from the US$1.4 billion gross outflows and US$1.0 billion gross inflows for the month.

The US$1.0 billion registered investments for June 2022 reflected an increase of 7.6 percent (or by US$73 million) compared to the US$966 million recorded in May 2022.

Majority of investments (or 77.4 percent) registered were in PSE-listed securities (investments mainly in property; holding firms; banks; food, beverage and tobacco; and information technology), while the remaining went to investments in Peso government securities (22.6 percent).

Investments for the month mostly came from the United Kingdom, United States (US), Singapore, Hong Kong and Switzerland with combined share to total at 82.9 percent.

The US$1.4 billion gross outflows for the month were larger by 11.7 percent (or by US$145 million) than the US$1.2 billion recorded in May 2022. The US received 69.3 percent of total remittances.

Year-on-year, registered investments in June 2022 decreased by 50.7 percent (or by US$1.1 billion) from the US$2.1 billion recorded in June 2021, while gross outflows were smaller by 22.1 percent (or by US$391 million) than the outflows recorded for the same period last year (US$1.8 billion).

The US$342 million net outflows in June 2022 is a reversal from the US$335 million net inflows recorded in June 2021.

Year-to-date transactions (1 January to 30 June 2022) for foreign investments registered with the BSP, through AABs yielded net inflows of US$728 million, a turnaround from the US$106 million net outflows noted for the same period last year (1 January to 30 June 2021).

Registration of inward foreign investments delegated to AABs by the BSP is optional under the rules on foreign exchange transactions. It is required only if the investor or its representative will purchase foreign exchange 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 foreign exchange will have to be sourced outside the banking system.

[i]   Formerly titled as BSP-registered foreign portfolio investments; These investments refer to the following inward foreign investments registered with AABs: 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 portfolio investments such as Exchange Traded Funds and Philippine Depositary Receipts.