Xinhua News Agency, Manila, July 15 (Reporter Zhao Jiemin) — Latest data from the Central Bank of the Philippines shows that the amount of 'hot money' flowing into the Philippines reached $2.36 billion in the first half of this year, a year-on-year increase of 245%.
Data indicates that funds invested in stocks listed on the Philippine Stock Exchange amounted to $4.7 billion, an increase of 57%; funds invested in government peso bonds totaled $4.2 billion, an increase of 322%. These two types of investments accounted for 96.7% of the total foreign portfolio investment, while the remaining 3.3% consisted of peso time deposits, unit trust funds, and money market instruments.
Amando Tetangco, Governor of the Central Bank of the Philippines, stated in a release on the 14th that the sluggish U.S. economy would prompt foreign investors to shift funds from the United States to emerging markets, including the Philippines. He predicted that the Philippine peso would continue to appreciate this year.
Metropolitan Bank & Trust Company (Metrobank) stated that due to the influx of 'hot money,' the exchange rate of the Philippine peso against the U.S. dollar may appreciate to 42.5 to 1 in the second half of this year.
