Category : Press Release
Date : December 28, 2020
Agency : Bangko Sentral ng Pilipinas
Title : BSP-Registered Foreign Portfolio Investments Yield Net Inflows in November
Article : For the second consecutive month, BSP-registered foreign portfolio investments (1) yielded net inflows amounting to US$227 million, resulting from the US$1.6 billion gross inflows and US$1.3 billion gross outflows for November. This is lower than the net inflows of US$439 million recorded in October 2020.

The US$1.6 billion registered investments for November reflected a 15.7 percent growth compared to the US$1.4 billion recorded last month (or by US$213 million). About 68.1 percent of investments registered were in PSE-listed securities (pertaining mainly to banks, property companies, holding firms, food, beverage and tobacco companies and retail firms) while the remaining 31.9 percent went to investments in Peso government securities. The United Kingdom, Singapore, the United States (US), Hong Kong and Norway were the top five (5) investor countries for the month, with combined share to total at 82.4 percent.

Outflows for the month (US$1.3 billion) were higher compared to the level recorded for October (US$913 million) by 46.6 percent (or by US$425 million), with the US receiving 74.7 percent of total outflows.

FPI transactions from 1 January to 30 November 2020 yielded net outflows of US$3.7 billion resulting from the US$14.3 billion gross outflows and US$10.6 billion gross inflows for the said period. This is larger compared to the US$1.6 billion net outflows noted for the same period last year (1 January to 30 November 2019) brought about by uncertainties due, among others, to the ongoing impact of the COVID-19 pandemic to the global economy and financial system along with international and domestic developments such as geopolitical tensions, certain corporate governance issues and extended quarantine measures in select regions in the country. Meanwhile, year-to-date transactions for all investments (PSE-listed securities, Peso GS, and other investments) resulted in net outflows.

??Registration of inward foreign investments with the BSP is optional under the liberalized rules on foreign exchange transactions. The issuance of a BSP registration document entitles the investor or his representative to buy 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 his investment but the foreign exchange will have to be sourced outside the banking system.


1 Refer to inward foreign investments in PSE-listed securities (PSE); Peso-denominated government securities (GS); 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
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