Arab Today, arab today us fed\s stimulus cutback triggers massive \hot money\ outflow from philippines
Last Updated : GMT 04:33:33
Arab Today, arab today
Arab Today, arab today

US fed\'s stimulus cutback triggers massive \'hot money\' outflow from Philippines

Arab Today, arab today

Arab Today, arab today US fed\'s stimulus cutback triggers massive \'hot money\' outflow from Philippines

Manila - XINHUA

The decision of the U.S. Federal Reserve to scale down its stimulus program originally meant to stimulate the ailing American economy has taken its toll on the Philippines and other Asian emerging economies. According to the Bangko Sentral ng Pilipinas, the Philippine's central bank, the Fed's decision resulted in a massive outflow of foreign portfolio investment from the country in January as " investors started to divert funds back to the U.S. as the American economy exhibited more signs of recovery." The Fed's monthly bond purchases was cut back from 85 billion U. S. dollars to 75 billion U.S. dollars in December and further to 65 billion U.S. dollars in January In a statement, the central bank said that foreign portfolio investment or "hot money," reversed to a net outflow of 1.8 billion U.S. dollars in January from a net inflow of 1.27 billion U.S. dollars in the same month last year. This was the biggest monthly outflow of portfolio capital on record, the central bank said. The term "hot money" commonly used in financial markets refers to the flow of funds or capital from one country to another in order to earn short-term profits. This kind of investment can move very quickly in and out of the market and could lead to market instability. In the Philippines, portfolio investments are placed mostly in shares listed on the Philippine Stock Exchange, government securities, and peso-denominated time deposits. Registered investments in January reached 1.3 billion U.S. dollars - less than half the 2.8 billion U.S. dollars in gross investments that entered the country the year before. These investments were offset by the 3.1 billion U.S. dollars that flowed out of the country last month. While most analysts predict that the U.S. Fed's action could trigger a region-wide economic slowdown, Takehiko Nakao, president of the Manila-based Asian Development Bank, has expressed confidence that emerging Asian economies will be able to weather its impact, predicting growth of about 6 percent this year and next. In an interview last month in Tokyo, Nakao said that the Asian market has already incorporated elements of the tapering-off to some extent and "there was a certain overreaction on the side of the market." Nakao said that a strengthening of the U.S. and Japanese economies should help emerging Asian nations in 2014. "At the same time, it's important that policy makers in the region use the period of stability to address domestic policy needs," he said. Japan and the U.S. are the two biggest markets of export products of the Philippines and other Asian countries. Philippine socio-economic planning secretary Arsenio Balisacan also allayed fears that the current volatility of the financial market would disrupt the country's high growth trend. "Portfolio capital may come and go quickly but foreign direct investments (FDI) are determined by fundamentals," Balisacan said. But what Balisacan did not mention is the fact that the Philippines has been the laggard as recipient of FDI inflows among the members of the Association of Southeast Asian Nations (ASEAN) A report by the research arm of the Metropolitan Bank & Trust Co. (Metrobank), one of the country's biggest banks, said that while there was a surge in the inflow of FDI to the Philippines in November last year, the country remains on the tail-end of FDI inflow recipients in the region. The country's net FDI inflow rose to 286 million U.S. dollars in November, bringing the 11-month figure to 3.648 billion U.S. dollars, or 37 percent higher than in the same period in 2012. "This may be seen as an improvement from five years ago as the YTD (year to date) figure breached the 12-year average of FDI flows which is near the 2-billion-U.S. dollar mark," Metrobank Research said. However, the research unit pointed out that the Philippines' annual average FDI from 2000 to 2012 amounted to 1.547 billion U.S. dollars, far below Thailand's 7.223 billion U.S. dollars and Indonesia's 6.208 billion U.S. dollars. The country also lagged behind Malaysia, whose annual average FDI in the 12 years to 2012 totaled 5.885 billion U.S. dollars and Vietnam with 4.545 billion U.S. dollars. The World Investment Report for 2013 released by the United Nations Conference on Trade and Development (UNCTAD) late last year also showed that the Philippines lagged behind other ASEAN countries in FDI inflows with only 2.797 billion U.S. dollars recorded in 2012. The UNCTAD report said that in 2012, Singapore's FDI inflows were the highest at 56.65 billion U.S. dollars, followed by Indonesia with 19.85 billion U.S. dollars and Malaysia with 10.07 billion U.S. dollars.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us fed\s stimulus cutback triggers massive \hot money\ outflow from philippines Arab Today, arab today us fed\s stimulus cutback triggers massive \hot money\ outflow from philippines

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday