ASEAN KEY DESTINATIONS
Hot money floods Philippines
Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said hot money in November yielded a net inflow of US$1.7 billion, 24 times higher than the $73 million in the same month last year and 65 percent more than the $1 billion in October.
For the first 11 months of the year, the country enjoyed net inflows of $4.2 billion, reflecting an increase of more than nine times the $431 million recorded in 2009.
Registered investments aggregated $11.6 billion, or 96 percent higher than last year's $5.9 billion.
Of these, $7.7 billion were investments in Philippine Stock Exchange-listed shares, up from $4.5 billion in 2009.
The central bank said the bulk of these investments went to property companies at $1.38 billion, banks at $1.5 billion, holding firms at $1.36 billion, telecommunication companies at $1.2 billion and utility firms at $942 million.
The $3.9-billion balance of registered investments went to peso-denominated government securities and peso time deposits and money market instruments.
The top five investors came from the United States, the United Kingdom, Singapore, Luxembourg and Hong Kong, contributing 81.6 percent of the total inflows.
Outflows reached $7.4 billion compared with the $5.4 billion in the same period last year, which were mostly withdrawals from interim peso deposits, the BSP said.
Registration of foreign investments with the BSP is voluntary. It entitles the non-resident investor or his representative to buy foreign exchange from authorized agent banks or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of related earnings.
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