Foreign Portfolio Investments in Philippines Surge in July
The net flow of foreign portfolio investments in the Philippines has surged in July which was
reportedly the highest in 20 months.
The Bangko Sentral ng Pilipinas (BSP) reported Thursday that the net inflow of foreign “hot money,” or investments by nonresidents in stocks, bonds and other portfolio assets from the country, hit $962.75 million in July.
The increase of foreign portfolio investments, also known as “hot money” was credited to the improved credit rating of the Philippines.
Standard & Poor’s , an American financial services company, raised the country’s credit rating in early July from two notches to just one notch below investment grade, citing improving macroeconomic fundamentals.
The significant increase of influx of hot money in the Philippines simply indicates that the government’ s vision to make the Philippines as an investment haven is starting to become a reality because of the government’ s improved fiscal and economic policies. Fortunately, such improvements have been recognized by credible and internationally acclaimed financial services company such as Standard &Poor’s.
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