The net hot money outflow in 2014 was a reversal of the $4.2 billion net inflow in 2013. This was also the first year with a net outflow since 2008.
"The investment flows reflected investor reaction to the tapering of the quantitative easing program of the United States which started in January 2014 and ended in October 2014," the BSP said.
The BSP said gross portfolio investments in 2014 reached $21.8 billion against gross outflows of $22.1 billion.
Investments in equity securities and local bonds yielded net outflows of $13.7 billion and $5.6 billion for the whole of 2014.
In December, net inflows stood at $397 million, compared with $354 million net outflows during the same period in 2013.
However, the BSP noted that portfolio investments in 2014 remained robust, and the second highest recorded since 1999.
The UK, the United States, Singapore, Luxembourg and Malaysia were the top five investor countries in 2014. The United States continued to be the main destination of outflows, receiving 82.2 percent of total.
Registration of foreign investments with the central bank is voluntary, but is required if investors want to buy foreign currency to be sent out of the country.
The country had a balance of payments deficit of $2.88 billion in 2014, the first deficit since 2004. - With Reuters
source: www.abs-cbnnews.com
