BSP reports positive net inflow of hot money in October

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Metro Manila (CNN Philippines, November 15) — Inflows of foreign portfolio investments (FPI) exceeded outflows in October, according to the latest central bank data.

The Bangko Sentral ng Pilippinas (BSP) reported that October had net FPI inflows of $105 million, a partial recovery from September's $232 million worth of net outflows.

FPI is also known as "hot money" due to the ease with which it enters and exits the economy.

Approximately 81.9 percent of the October inflows were placements in securities listed on the Philippine Stock Exchance, while the remaining 18.1 percent were investments in peso-denominated government securities.

The BSP noted that factors such as the easing of US-China trade tensions, initial public offerings from local industrial and service companies, the lower reserve rate ratio for banks and lower domestic inflation may have led to this month's positive figures.

The United Kingdom, the United States, Singapore, Luxembourg and Malaysia were the top sources of portfolio investments in October.