SHORT-TERM foreign investments turned negative in August amid global uncertainties, latest Bangko Sentral ng Pilipinas (BSP) data showed.
Foreign investments registered with the central bank through authorized agents, also known as “hot money” as these can quickly be moved to maximize profits from interest rates, posted a net outflow of $315.41 million during the month.
This was a reversal from the year-earlier $2.29-billion inflow and the $66.47 million seen in July.
The August result led to a net outflow of $4.25 billion for the first eight months of 2026, also a reversal from the net inflow of $4.58 billion seen in January-August 2025.
Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that uncertainty over the Middle East crisis had pushed up global oil prices and local fuel costs, fueling inflation and prompting the central bank to raise interest rates.
“These developments have increased borrowing costs and weighed on investor sentiment,” he said.
Gross inflows for August alone totaled $1.83 billion, down from $4.18 billion in the same month last year and July’s $2.37 billion.
Outflows, meanwhile, hit $2.14 billion compared to $2.3 billion and $1.88 billion a month and a year earlier.
Gross inflows for the eight-month period dropped to $17.44 billion from $18.62 billion in January–August 2025, while the gross outflows of $21.69 billion were higher than the $14.03 billion recorded in the same period last year.
The BSP tally accounts for funds received by authorized agent banks (AABs). Registration of the investment is only required if the investor or its representative purchases foreign exchange from AABs or their subsidiaries/affiliates for the repatriation of capital and remittance of earnings from the investment.
