BSP sees inflation easing to 7.4% to 8.2% in March

By Cai U. Ordinario

food items.

The BSP said the US received 67.3 percent of total outward remittances.

Year-on-year, registered investments in February decreased by 28 percent or by $265 million from the $945 million recorded in February 2022.

The BSP said gross outflows were larger by 80.7 percent or by $541 million than the outflows recorded a year ago at $670 million.

The $531 million net outflow in February 2023 is a reversal compared to the $274 million net outflow recorded for the same period a year ago.

Year-to-date transactions between January 1 and February 28, 2023 for foreign investments registered with the BSP through AABs yielded net outflows of $239 million.

This was a turnaround from the $289 million net inflows noted for the same period last year or between January 1 and February 28, 2022.

The BSP said the registration of inward foreign investments delegated to AABs 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 AABs 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. Cai U. Ordinario