Staff of Reuters 2 minutes In Makati City, Metro Manila, Philippines, on September 19, 2018, a man counts a wad of Philippine Peso bills he received from a relative working abroad at a money remittance center. Eloisa Lopez/REUTERS (Reuters) – NEW YORK (Reuters) – Despite a hawkish tilt from the US Federal Reserve in the middle of the month, foreign net flows to emerging market equities and debt portfolios increased to over three times the May amount in June, according to data released by the Institute of International Finance (IIF) on Thursday. According to the data, net projected inflows totaled $28.1 billion in June, compared to $10.9 billion in May. Last month, debt flows accounted for $18.9 billion of overall flows to developing economies, with $6.4 billion going to China. China received $5.2 billion of the $9.2 billion in net foreign flows to emerging-market equities. “While the Fed’s recent hawkish shift has had an impact on flows, the overall picture remains positive, owing to the significant contribution of new debt issuance across emerging countries and the significant contribution of China flows,” IIF economist Jonathan Fortun said in a statement. According to the research, portfolio inflows to Asia and Latin America were $14.4 billion and $10.8 billion, respectively, while emerging Europe, Africa, and the Middle East received $3.0 billion. Following their meeting in mid-June, Fed officials anticipated an accelerated timetable for interest rate increases, pushing the first rate hike from 2024 to 2023. Rodrigo Campos contributed reporting, and Christopher Cushing edited the piece./n
Read More
