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

Transactions on foreign investments registered with the BSP, through AABs, in January 2024 recorded net outflows of US$76 million resulting from the US$1.3 billion gross outflows and the gross inflows of US$1.2 billion for the month.  The recorded net outflows are lower than the net outflows posted in December 2023 (US$205 million).

The US$1.2 billion registered investments for the month are higher by US$170 million (or by 15.9 percent) compared to the US$1.1 billion recorded in December 2023. During the month, 62.7 percent of registered investments were in PSE-listed securities (US$775 million) [most of which were investments made in: (a) banks; (b) holding firms; (c) property; (d) transportation services; and (e) food, beverage and tobacco], while about 37.3 percent were in Peso GS (US$460 million), and the remaining [less than one (1) percent] were in other instruments. Investments for the monthmostly came from the United Kingdom, United States, Singapore, Luxembourg, and Hongkong with combined share to total at 85.5 percent.

The US$1.31 billion gross outflows for the month were higher by US$40 million (or by 3.2 percent) compared to the gross outflows recorded for December 2023 (US$1.27 billion). The US remains to be the top destination of outflows, receiving US$600 million (or 45.8 percent) of total outward remittances.

Year-on-year, registered investments in January 2024 are higher than the US$1.0 billion recorded in January 2023 (by US$231 million or 23.1 percent), while gross outflows increased by US$599 million (or by 84.0 percent) vis-à-vis the gross outflows posted in January 2023 (US$713 million). The US$76 million net outflows in January 2024 were a reversal of the net inflows recorded for the same period a year ago (US$ 291 million).

Registration of inward foreign investments delegated to AABs 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 AABs 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.