THE net inflow of registered foreign portfolio investments for the first six months soared 245 percent compared with the same period last year.
The increase was fueled by “hot money” deposits, the Bangko Sentral ng Pilipinas (BSP) reported.
BSP recorded a net inflow of $687 million in hot money, which is credited with the significant rise in investments in time deposits, Philippine Stock Exchange (PSE)-listed securities and government securities.
Hot money describes funds that are quickly moved from one form of investment to another.
Time deposits rose from $1 million in 2009 to $385 million as of the end of June 2010 while PSE-listed securities increased by 27 percent and government securities by 38 percent.
Registered investments increased by 40 percent year-on-year to $4.4 billion.
In June, however, BSP-registered foreign portfolio investment transactions declined $86 million from $178 million a month ago.
BSP said the decrease was caused by concerns on euro-zone problems, the negative economic stance of the United States and China and the government’s budget deficit of P162.1 billion for the first five months of the year. (PR)
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