Manila: Senate President Francis Escudero on Monday downplayed concerns over the USD283.7 million foreign portfolio, also known as 'hot money' due to the speed it comes in and out of an economy, that left the country in January, emphasizing that such capital movements are normal occurrence in financial markets.

According to Philippines News Agency, Escudero explained that 'hot money' refers to funds controlled by investors seeking short-term returns. In a Viber message to reporters, he stated, 'When hot money 'leaves' a country, it simply means that there is a promise of a higher return somewhere else and is not, in any way, a reflection on a country's short-, medium-, or long-term stability or growth prospects.'

The Bangko Sentral ng Pilipinas (BSP) earlier reported that net outflows of hot money, often driven by global market trends, hit USD283.7 million in January, reversing the USD292 million net inflows recorded in December 2024.

Escudero further noted that foreign direct investments (FDI) are a more critical indicator of economic growth, as they represent long-term commitments to the country. He emphasized that these long-term investments, such as through FDI, are foundational to the development of a country's economy.