The net outflow of hot money in May wiped out net inflows of $51.49 million in April and $72.81 million in May 2016, the Bangko Sentral ng Pilipinas (BSP) said in a report on Friday. Total inflows reached $1.48 billion during the month, while total outflows stood higher at $1.50 billion in April. Net outflow in 5 mthsIn the first five months of the year, hot money registered a net outflow of $543.79 million, reversing a $178 million net inflow a year earlier. “Transactions in PSE-listed securities and OPDIs yielded net inflows of $103 million and $35 million, respectively, while investments in peso GS resulted in net outflows of $163 million,” the BSP also pointed out. Foreign portfolio investment is also called hot money because of the ease with which the funds move in and out of a country.

Source: Manila Times June 16, 2017 17:37 UTC