FOREIGN portfolio investment of $409.01 million in net amount flowed out of the Philippines in February this year, the central bank said on Thursday. The net outflow of portfolio investment in February 2017 reversed a net inflow of $57.74 million recorded in February 2016, as well a $301.33-million net inflow in January, official data showed. The BSP said total outflows reached $1.390 billion in February, far exceeding total inflows of $981.20 million during the month. For the first two months of the year, hot money registered a net outflow of $168.41, widening from the $60.89 net outflow posted a year earlier. Foreign portfolio investments are also known as hot money because of the ease with which the funds move in and out of a country and do not necessarily create jobs, unlike foreign direct investments, which are used to build factories and buy capital equipment.

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