Large improvement in the reinvested earnings and other capital accounts boosted foreign direct investments (FDI) in September 2010 after it reversed to US$ 66 million net inflow against year-ago’s US$ 54 million net outflow.
Data released by the Bangko Sentral ng Pilipinas (BSP) Friday showed net of other capital reached US$ 62 million as against the US$ 9 million in the previous month while reinvested earnings totaled to US$ 26 million from month-ago’s US$ 5 million inflow.
In September last year, the other capital accounts posted a US$ 12 million net outflow while reinvested earnings stood at US$ 3 million net inflow.
BSP said the net inflows in the reinvested earnings and other capital accounts “more than compensated” the US$ 22 million net outflow in the equity capital last September.
“The moderate inflows this year reflected cautious investor sentiment on the back of renewed concerns over the exposure of European banks to sovereign debt and the health of the American economy, notwithstanding the strong fundamentals in the domestic economy,” it said.