"Behind the Scenes: Hot Money Flows Rebound in 2024" This article appears to be a financial analysis piece focused on short-term foreign investments, also known as "hot money", and how it affects the treasure hunting industry.

Here is the edited blog post

Behind the Scenes Hot Money Flows Rebound in 2024

As treasure hunters, it's crucial to stay abreast of economic trends that shape our industry. In this article, we'll delve into the recent shift in short-term foreign investments, also known as hot money. A notable turnaround occurred last year, with net inflows reaching $2.1 billion, reversing 2023's net outflow of $248.84 million.

A Deeper Dive into the Numbers

The total outflows increased by 20.5% to reach $15.83 billion, while inflows rose by 39.2% to $17.93 billion. This surge in investments was largely driven by a rebound in peso government securities (54.2%) and Philippine Stock Exchange (PSE)-listed securities (45.8%).

Country Breakdown

The top five investor countries were the United Kingdom, Singapore, the United States, Luxembourg, and Hong Kong, accounting for 86.3% of total investments.

Outflows Where Did They Go?

Most outflows (96%) involved capital repatriation, with the majority heading to the United States ($7.87 billion). Remittances of earnings accounted for the remaining 4%.

December Insights

In December alone, BSP-registered foreign investments recorded a net outflow of $487.37 million, a reversal from November's $96.59 million net inflows.

What's Behind the Rebound?

According to Rizal Commercial Banking Corp. chief economist Michael Ricafort, the 2024 improvement can be largely attributed to rate cuts implemented by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve. These rate cuts reduced borrowing costs, leading to increased investments, employment, trade, and economic activities.

What Does This Mean for Treasure Hunters in 2025?

As we look ahead to 2025, it's essential to stay informed about these trends and how they might impact our industry. By understanding the movements of hot money and other financial indicators, treasure hunters can make more informed decisions when planning their expeditions.

Conclusion

In this article, we've taken a closer look at the recent shift in short-term foreign investments, also known as hot money. As we move into 2025, it's essential to stay informed about these trends and how they might impact our industry. By doing so, treasure hunters can make more informed decisions when planning their expeditions.

Keywords Hot Money, Treasure Hunting, Bangko Sentral ng Pilipinas (BSP), Foreign Investments, Rate Cuts

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.