As of the Bangko Sentral ng Pilipinas’ latest figures, more of these so-called hot money investments left the country than entered it in the first seven months of 2020.
“This was larger compared to the $706 million net outflows noted for the same period last year brought about by uncertainties due, among others, to the impact of the COVID-19 pandemic to the global economy and financial system, and other key events earlier in the year such as the geopolitical and trade tensions, and corporate governance issues involving the water concessionaires,” the BSP said.
For July 2020 alone, BSP-registered foreign portfolio investments yielded net outflows of $453 million resulting from the $1.2 billion gross outflows and $719 million gross inflows for the month.The $719 million registered investments for the month reflected a 29.5 percent decline compared to the $1 billion recorded for June 2020.