01/03/2025
FOREIGN INVESTMENTS REGISTERED WITH THE BANGKO SENTRAL NG PILIPINAS, THROUGH AUTHORIZED AGENT BANKS[I], YIELD NET OUTFLOWS IN JANUARY 2025
In January 2025, transactions on foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) through authorized agent banks (AABs) recorded net outflows of US$283.69 million. This resulted from gross outflows of US$1,602.72 million and gross inflows of US$1,319.02 million for the month. The net outflows in January 2025 were lower than the net outflows of US$487.37 million recorded in December 2024 by USD203.68 million or 41.8 percent.
The US$1,319.02 million gross inflows or registered investments for the month were higher by US$263.56 million (or 25.0 percent) compared to the US$1,055.47 million recorded in December 2024. Of these investments, 67.9 percent (US$896.09 million) were in Peso government securities, while 32.1 percent (US$422.93 million) were in PSE-listed securities. The majority of investments in PSE-listed securities were made in banks, transportation services, property, holding firms, and the food, beverage, and to***co sectors.
The primary sources of these investments were the United Kingdom, Singapore, the United States, Ireland, and Luxembourg, which collectively accounted for 89.0 percent of the total.
In January 2025, gross outflows amounted to US$1,602.72 million, an increase of US$59.88 million (or 3.9 percent) compared to the US$1,542.84 million recorded in December 2024. The United States remained the top destination for outflows, receiving US$559.27 million (or 34.9 percent) of total outflows.
On a year-on-year basis, registered investments in January 2025 were higher than the US$1,235.39 million recorded in January 2024 by US$83.64 million or 6.8 percent. Gross outflows for the month also increased by 22.2 percent (or US$291.51 million) vis-à-vis the US$1,311.21 million figure for January 2024. The US$283.69 million net outflows in January 2025 were higher compared to the net outflows of US$75.83 million in January 2024 by USS$207.87 million or 274.1 percent.
Registration of inward foreign investments delegated to authorized agent banks by the BSP is optional under the rules on foreign exchange (FX) transactions. It is required only if the investor or its representative will purchase FX from authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of earnings that accrue on the registered investment. Without such registration, the foreign investor can still repatriate capital and remit earnings on its investment, but the FX will have to be sourced outside the banking system.