Hot money breaches $1-B in Jan; highest since Nov 2010

Posted at 02/14/2013 4:35 PM

MANILA, Philippines - Net foreign portfolio investments or hot money inflows more than doubled to $1.270 billion in January from $586.01 million a year ago, the Bangko Sentral ng Pilipinas reported on Thursday.

This is the highest level recorded since November 2010's net hot money inflow of $1.673 billion.

The central bank said money flowed in the country due to the expected less stricter rules on foreign ownership, steady policy rates, improved outlook on the Philippine economy, and the faster-than-expected 6.6% growth in 2012.

Gross inflows amounted to $2.810 billion in January, while gross outflows summed up to $1.529 billion.

BSP said inflows came mainly from Singapore, the United States, the United Kingdom, Luxembourg, and Hong Kong. The United States, meanwhile, continued to be the main beneficiary of outflows.