Hot money swings to 315 million dollar outflow in August
Foreign portfolio investments swung back to a net outflow in August, reversing three straight months of net inflows, as renewed geopolitical tensions, higher oil prices and inflation concerns weighed on investor sentiment.
Foreign portfolio investments experienced a net outflow of $315.41 million in August 2025, marking a reversal from three months of net inflows and a significant drop from the $2.3 billion inflow recorded in August 2024. The decline in investor sentiment, driven by renewed geopolitical tensions, higher oil prices, and inflation concerns, contributed to the outflow.
The Bangko Sentral ng Pilipinas (BSP) reported a 56.2% plunge in gross inflows to $1.83 billion from $4.18 billion a year earlier, and a 22.8% decrease from $2.37 billion in July. Gross outflows, however, increased by 13.8% year-on-year to $2.14 billion from $1.88 billion, but still declined by 7% from $2.30 billion in July. Analysts attribute the reversal to uncertainty surrounding the conflict between the United States and Iran, as well as higher crude oil prices and the peso's weakness against the dollar, which could raise import costs and inflationary pressures.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
