The Bangko Sentral ng Pilipinas (BSP) reported that foreign portfolio investments (FPI) or “hot money” yielded a net outflow of $494 million in September. This is due to lingering investor uncertainties amid the COVID-19 pandemic.
FPI is also called hot money due to the ease by which the fund enters and exits the markets.
The central bank noted that the net FPI outflow resulted from $1.1 billion gross outflows, which surpassed the $594-million gross inflows during the period.
BSP attributed the wider net outflow of FPI to “uncertainties due, among others, to the ongoing impact of the COVID-19 pandemic to the global economy and financial system coupled with international and domestic developments such as geopolitical tensions, certain corporate governance issues and extended quarantine measures in select regions in the country.”