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NEWS RELEASE FOR WIRE TRANSMISSION: 8:30 A.M. EDT, TUESDAY, June 25, 2013 Christopher A. Gohrband: Elena L. Nguyen: Kevin Barefoot: (202) 606-9564 BEA 13-29 (202) 606-9555 (202) 606-9994 (For inquiries regarding direct investment) U.S. Net International Investment Position: End of First Quarter 2013, Year 2012, and Annual Revisions Quarterly and Annual Statistics In this release, BEA presents the U.S. international investment position statistics for the first quarter of 2013 along with historical revisions and detailed annual statistics for 2012, including changes in positions resulting from annual financial flows and valuation changes such as price, exchange-rate, and other changes. Quarterly positions are revised for the first quarter of 2009 to the fourth quarter of 2012 and detailed annual statistics are revised for 2009-2012. Quarterly position statistics are available for the fourth quarter of 2005 to the first quarter of 2013. They are presented as part of BEA’s effort to provide more frequent and timely statistics on cross-border linkages to help users better assess U.S. vulnerability to external financial shocks in the aftermath of the 2008 financial crisis. Quarterly statistics are made available every March, June, September, and December via BEA news releases. First Quarter of 2013 The U.S. net international investment position at the end of the first quarter of 2013 was -$4,277.1 billion (preliminary) as the value of foreign investments in the United States exceeded the value of U.S. investments abroad (table 1). At the end of the fourth quarter of 2012, the U.S. net international investment position was -$3,863.9 billion (revised). The -$413.2 billion change in the net position reflected a $394.2 billion increase in the value of foreign-owned assets in the United States and a $19.0 billion decrease in the value of U.S.-owned assets abroad. Foreign-Owned Assets in the United States and U.S.-Owned Assets Abroad U.S. Net International Investment Position, 2006:IV-2013:I Billions of dollars 30,000 Billions of dollars 0 -500 25,000 -1,000 -1,500 Foreign-owned assets in the United States 20,000 Quarterly series -2,000 2006:IV U.S.-owned assets abroad 15,000 -2,500 2006:IV -3,000 Annual series 10,000 -3,500 -4,000 5,000 -4,500 0 -5,000 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 __________________ NOTE: This news release is available on BEA’s Web site <www.bea.gov> along with Quarterly Highlights and Annual Highlights related to this release, the latest detailed statistics for the U.S. international investment position, and a description of the estimation methods used to compile them. The first-quarter statistics for 2013 in this release are preliminary and will be revised on September 24, 2013. -more- -2U.S.-owned assets abroad were $21,618.6 billion at the end of the first quarter compared with $21,637.6 billion at the end of the fourth quarter. The $19.0 billion decrease reflected a decrease of $373.9 billion in the value of financial derivatives that was mostly offset by an increase of $354.8 billion in the value of U.S.-owned assets abroad excluding financial derivatives. U.S.-owned assets abroad excluding financial derivatives were $18,372.7 billion at the end of the first quarter compared with $18,017.9 billion at the end of the fourth quarter. The $354.8 billion increase reflected $218.8 billion in financial outflows and $136.1 billion in valuation changes. 1 Foreign-owned assets in the United States were $25,895.7 billion at the end of the first quarter compared with $25,501.5 billion at the end of the fourth quarter. The $394.2 billion increase reflected an increase of $749.3 billion in the value of foreign-owned assets in the United States excluding financial derivatives that was partly offset by a decrease of $355.1 billion in the value of financial derivatives. Foreign-owned assets in the United States excluding financial derivatives were $22,688.8 billion at the end of the first quarter compared with $21,939.5 billion at the end of the fourth quarter. The $749.3 billion increase reflected $295.5 billion in financial inflows and $453.8 billion in valuation changes. Year 2012 The U.S. net international investment position was -$3,863.9 billion (revised) at the end of 2012 compared with -$3,730.6 billion (revised) at the end of 2011. The -$133.3 billion change in the net position from the end of 2011 to the end of 2012 reflected a $134.8 billion increase in the value of foreign-owned assets in the United States that was slightly offset by a $1.5 billion increase in the value of U.S.-owned assets abroad (table 2). Highlights for 2012: • Foreign acquisitions of U.S. assets exceeded U.S. acquisitions of foreign assets by $439.4 billion. Foreign acquisitions of U.S. assets were concentrated in U.S. securities, including $433.2 billion in acquisitions of U.S. Treasury securities by foreign official agencies and $156.4 billion in acquisitions by all other foreigners. • Foreign acquisitions of U.S. assets and U.S. acquisitions of foreign assets were reduced by declines in both U.S. claims on and liabilities to foreigners reported by U.S. banks and securities brokers. • The appreciation of foreign stock prices raised the value of U.S. holdings of foreign stocks abroad. Similarly, the appreciation of U.S. stock prices raised the value of foreign holdings of U.S stocks, but by a lower amount. • The mixed performance of the U.S. dollar against major foreign currencies resulted in a $5.1 billion change in the U.S. net international investment position from exchange-rate changes. • The -$188.6 billion in other changes mostly reflected the incorporation of newly available 1 For statistics on financial flows, see the financial account transactions of the U.S. International Transactions Accounts in Table 1. Detailed valuation changes such as price, exchange-rate, and other changes are available only for the annual statistics. -more- -3and revised source data. • The U.S. net international investment position was equal to 2.3% of the value of all U.S. financial assets at the end of 2012, down from the peak of 2.4% at the end of 2011. 2 Financial flows Net financial flows of -$439.4 billion in 2012 resulted from U.S. acquisitions of financial assets abroad, excluding financial derivatives, of $97.5 billion, less foreign acquisitions of financial assets in the United States, excluding financial derivatives, of $543.9 billion, plus net financial outflows from financial derivatives of $7.1 billion. U.S. acquisitions of financial assets abroad, excluding financial derivatives, were $97.5 billion, down from $452.3 billion in 2011. In 2012, U.S. purchases of foreign securities exceeded sales, and U.S. official reserve assets, direct investment abroad, and claims of U.S. nonbanks on foreign residents increased. These financial outflows were partly offset by decreases in U.S. government assets other than official reserve assets and relatively large decreases ($380.5 billion) in claims of U.S. banks and securities brokers on foreign residents. Foreign acquisitions of financial assets in the United States, excluding financial derivatives, were $543.9 billion, down from $969.0 billion in 2011. In 2012, foreign private purchases of U.S. securities including U.S. Treasury securities exceeded sales. Foreign official assets, direct investment in the United States, and holdings of U.S. currency increased. These financial inflows were partly offset by relatively large decreases ($387.4 billion) in liabilities of U.S. banks and securities brokers and decreases in liabilities of U.S nonbanks to foreign residents. Valuation adjustments Valuation adjustments for 2012 included $489.6 billion in price changes, $5.1 billion in exchange-rate changes, and -$188.6 billion in other changes. Price changes led to a $489.6 billion change in the U.S. net international investment position, mostly reflecting price increases of foreign stocks and bonds that exceeded price increases of U.S. stocks and corporate bonds. Price increases of U.S. stocks and corporate bonds were partly offset by price decreases of U.S. Treasury securities and agency securities, such as debt issued by government sponsored enterprises like Fannie Mae and Freddie Mac. Exchange-rate changes led to a $5.1 billion change in the U.S. net international investment position as exchange-rate changes raised the dollar value of U.S.-owned assets abroad more than they raised the dollar value of foreign-owned assets in the United States denominated in foreign currencies. The small exchange-rate changes reflected the mixed performance of the U.S. dollar against major foreign currencies from yearend 2011 to yearend 2012. 2. Board of Governors of the Federal Reserve System (FRS), Flow of Funds Accounts of the United States, Flows and Outstandings, First Quarter 2013, Release Z.1. Statistical Release (Washington, DC: FRS, June 6, 2013) Table L.5, page 11. According to June 2013 Z.1 release, the value of all U.S. financial assets was $168,691.8 billion at the end of 2012. U.S. assets abroad from the international investment position were $21,637.6 billion at the end of 2012, 12.8% of all U.S. assets, down from 13.7% in 2011 and from the 13.8% series peak in 2008. -more- -4- Other changes led to a -$188.6 billion change in the U.S. net international investment position. These changes reflected the incorporation of newly available source data on aggregate holdings of long-term securities by U.S. and foreign residents from the Treasury International Capital reporting system (TIC), more complete TIC reporting of the nonbanking and banking data, capital gains and losses from the sale of direct investment assets, and other adjustments to source data. (See the Annual Revisions section on page 5 for more information on the TIC source data.) Investment positions at the end of 2012 U.S.-owned assets abroad were $21,637.6 billion at the end of 2012 compared with $21,636.2 billion at the end of 2011. The $1.5 billion increase reflected a $1,098.3 billion increase in the value of U.S.-owned assets abroad excluding financial derivatives that was nearly offset by a $1,096.8 billion decrease in the value of financial derivatives. Financial derivatives held as assets were $3,619.8 billion at the end of 2012 compared with $4,716.6 billion at the end of 2011. The $1,096.8 billion decrease was mainly due to decreases in U.S. claims in single-currency interest rate swaps. U.S. official reserve assets were $572.4 billion at the end of 2012 compared with $537.0 billion at the end of 2011. The $35.3 billion increase reflected price appreciation of U.S. government gold and the increased U.S. reserve position in the International Monetary Fund. These increases were partly offset by a small decrease in the value of government foreign currency holdings resulting mostly from exchange-rate changes. U.S. government assets other than official reserve assets were $93.6 billion at the end of 2012 compared with $178.9 billion at the end of 2011. The $85.3 billion decrease was mainly a result of decreases in U.S. foreign currency holdings due to central bank liquidity swaps between the U.S. Federal Reserve System and foreign central banks. The stock of U.S. direct investment abroad at current cost was $5,077.8 billion at the end of 2012 compared with $4,663.1 billion at the end of 2011. The $414.6 billion increase reflected financial outflows of $388.3 billion that were mostly accounted for by reinvested earnings. U.S. holdings of foreign securities were $7,531.2 billion at the end of 2012 compared with $6,441.4 billion at the end of 2011. The $1,089.9 billion increase was mostly attributable to price increases of foreign stocks. Claims on foreigners reported by U.S. nonbanks were $844.8 billion at the end of 2012 compared with $793.0 billion at the end of 2011. Claims on foreigners reported by U.S. banks and securities brokers were $3,898.2 billion at the end of 2012 compared with $4,306.2 billion at the end of 2011. Foreign-owned assets in the United States were $25,501.5 billion at the end of 2012 compared with $25,366.7 billion at the end of 2011. The $134.8 billion increase reflected a -more- -5$1,203.3 billion increase in the value of foreign-owned assets in the United States excluding financial derivatives that was mostly offset by a $1,068.6 billion decrease in the value of financial derivatives. Financial derivatives held as liabilities were $3,562.0 billion at the end of 2012 compared with $4,630.5 billion at the end of 2011. The $1,068.6 billion decrease was mainly due to decreases in U.S. liabilities in single-currency interest rate swaps. Foreign official assets in the United States were $5,692.4 billion at the end of 2012 compared with $5,256.4 billion at the end of 2011. The $436.1 billion increase was mostly a result of net purchases of U.S. Treasury securities along with corporate bonds and stocks that were partly offset by net sales of agency bonds. The stock of foreign direct investment in the United States at current cost was $3,057.3 billion at the end of 2012 compared with $2,879.5 billion at the end of 2011. The $177.8 billion increase was mainly due to financial inflows that were mostly accounted for by unusually large reinvested earnings. Foreign private holdings of U.S. Treasury securities were $1,541.6 billion at the end of 2012 compared with $1,386.3 billion at the end of 2011. The $155.3 billion increase was mostly a result of net purchases. Foreign private holdings of U.S. securities other than U.S. Treasury securities were $6,904.1 billion at the end of 2012 compared with $6,151.6 billion at the end of 2011. The $752.5 billion increase was mostly attributable to price increases of U.S. stocks and to net purchases. The stock of U.S. currency abroad was $454.2 billion at the end of 2012 compared with $397.1 billion at the end of 2011. Liabilities to private foreign residents reported by U.S. nonbanks were $656.5 billion at the end of 2012 compared with $630.9 billion at the end of 2011. Liabilities to private foreign residents reported by U.S. banks and securities brokers were $3,633.4 billion at the end of 2012 compared with $4,034.5 billion at the end of 2011. Annual Revisions The U.S. international investment position statistics released today have been revised for the first quarter of 2009 to the fourth quarter of 2012. The revisions reflect newly available data from three Treasury International Capital (TIC) surveys conducted by the Federal Reserve Board and the U.S. Department of the Treasury: Aggregate Holdings of Long-Term Securities by U.S. and Foreign Residents (SLT), the Benchmark Survey of U.S. Ownership of Foreign Securities (SHC) at endDecember 2011, and the Annual Survey of Foreign Portfolio Holdings of U.S. Securities (SHLA) at end-June 2012. The SLT is a new monthly report that surveys U.S. custodians, issuers of U.S. securities, and U.S. end-investors to obtain cross-border holdings of U.S. and foreign equity and long-term debt securities by country. BEA has incorporated these new data beginning with position -more- -6statistics for the end of 2011. The new SLT data have allowed BEA to improve its quarterly position statistics and related financial flow and income statistics for long-term securities. Revisions to the U.S. international investment position statistics also reflect other newly available and revised data from the TIC reporting system and from BEA’s surveys of direct investment including the 2009 Benchmark Survey of U.S. Direct Investment Abroad. Revisions to the quarterly U.S. net international investment position averaged 1.6% for 2009, 3.8% for 2010, 9.1% for 2011, and 9.6% for 2012. Revisions are largest in the third and the fourth quarters of 2012. The net investment position at yearend 2012 is revised by $552.4 billion, becoming less negative, reflecting upward revisions to U.S. assets abroad that exceeded upward revisions to foreign-owned assets in the United States. On a yearend basis, the U.S. net international investment position is revised by $46.6 billion, becoming less negative for yearend 2009, $223.3 billion for yearend 2010, $299.7 billion for yearend 2011, and $552.4 billion for yearend 2012. • • • • U.S.-owned assets abroad at yearend 2009 are revised upward $46. 8 billion mostly as a result of the incorporation of BEA’s 2009 Benchmark Survey of U.S. Direct Investment Abroad. U.S.-owned assets abroad are revised upward $256.6 billion for yearend 2010, $503.8 billion for yearend 2011, and $877.5 billion for yearend 2012, reflecting large revisions to U.S. holdings of foreign securities, mostly as a result of BEA’s incorporation of the new SLT survey data. Revisions to the U.S. Net International Investment Position Billions of dollars 0 -500 -1,000 -1,500 -2,000 Revised -2,500 -3,000 2008:IV Previously Published -3,500 -4,000 Foreign-owned assets in the United States -4,500 at yearend 2009 are virtually unrevised. -5,000 2009 They are revised upward $33.3 billion for yearend 2010, mostly as a result of revisions to foreign direct investment in the United States. 2010 2011 2012 Foreign-owned assets in the United States are revised upward $204.1 billion for yearend 2011 and $325.2 billion for yearend 2012, reflecting revisions to foreign holdings of U.S. securities, mostly as a result of BEA’s incorporation of the new SLT survey data. The July SURVEY OF CURRENT BUSINESS will contain an article with a more detailed discussion of the international investment position statistics for the first quarter of 2013, annual statistics for 2012, and revised historical data. That issue will also contain an article about direct investment positions valued at historical-cost and revised historical data on direct investment with detail by country and industry. -more- -7Valuing the Components of the U.S. International Investment Position Investment positions for long-term portfolio securities are based on market values from monthly, annual, and benchmark surveys conducted by the Treasury International Capital (TIC) reporting system of the U.S. Department of the Treasury. Investment positions for financial derivatives are based on fair market values from quarterly surveys conducted by the TIC reporting system. Investment positions for claims and liabilities reported by banks, securities brokers, and other nonbanks are based on contractual (face) values of instruments as reported by financial institutions for both their own accounts and the accounts of their customers on the monthly and quarterly surveys conducted by the TIC reporting system with supplementary data for U.S. nonbanks from foreign central banks. Investment positions for direct investment are valued at current-period prices based on a revaluation of book values. Book values are reported by U.S. multinational companies on surveys conducted by BEA. Direct investment at current cost is BEA’s featured measure of direct investment at current-period prices. 3 The current-cost method values the U.S. and foreign parent shares of their affiliates’ investment in (1) plant and equipment using the current cost of capital equipment, (2) land using general price indexes, and (3) inventories using estimates of their replacement cost. 4 * * * Release dates in 2013: End of the Fourth Quarter and Year 2012........................................... .March 26, 2013 (Tuesday) End of the First Quarter of 2013, Year 2012, and Annual Revisions…...June 25, 2013 (Tuesday) End of the Second Quarter of 2013.................................................September 24, 2013 (Tuesday) End of the Third Quarter of 2013.....................................................December 30, 2013 (Monday) * * * BEA’s national, international, regional, and industry statistics; the Survey of Current Business; and BEA news releases are available without charge at www.bea.gov. At the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. 3 BEA publishes direct investment at market value as an alternative current-period price measure with owners’ equity revalued using indexes of stock market prices. BEA also publishes direct investment at historical cost with owners’ equity at the book value reported on BEA’s surveys. Country and industry detail for direct investment are available only on a historical-cost basis (see http://www.bea.gov/iTable/index_MNC.cfm). 4 For additional information on the current-cost and market-value methods, see J. Steven Landefeld and Ann M. Lawson, “Valuation of the U.S. Net International Investment Position,” Survey of Current Business 71 (May 1991): 40–49. -more- -8- Table 1. International Investment Position of the United States at the End of the Quarter 1 [Millions of dollars, not seasonally adjusted] Line 2012 2011 Type of investment IV r I r II r Change: 2012:IV to 2013:I 2013 III r IV r I p Change: 2011:IV to 2012:IV 1 Net international investment position of the United States (lines 2+3)....................................... 2 Financial derivatives, net (line 5 less line 25)................................................................................. 3 Net international investment position, excluding financial derivatives (line 6 less line 26)........... -3,730,590 86,039 -3,816,629 -3,886,446 76,286 -3,962,732 -4,332,158 67,589 -4,399,747 -4,109,198 52,493 -4,161,691 -3,863,892 57,776 -3,921,668 -4,277,128 38,986 -4,316,114 -413,236 -18,790 -394,446 -133,302 -28,263 -105,039 4 U.S.-owned assets abroad (lines 5+6).......................................................................................... 5 Financial derivatives (gross positive fair value)........................................................................... 6 U.S.-owned assets abroad, excluding financial derivatives (lines 7+12+17)............................... 21,636,152 4,716,578 16,919,574 21,349,048 3,950,239 17,398,809 20,948,183 4,155,820 16,792,363 21,551,595 3,925,606 17,625,989 21,637,618 3,619,761 18,017,857 21,618,571 3,245,866 18,372,705 -19,047 -373,895 354,848 1,466 -1,096,817 1,098,283 7 U.S. official reserve assets............................................................................................................ 537,037 572,578 556,620 606,277 572,368 553,058 -19,310 35,331 8 9 10 11 Gold 2....................................................................................................................................... Special drawing rights................................................................................................................ Reserve position in the International Monetary Fund............................................................... Foreign currencies...................................................................................................................... 400,355 54,956 30,080 51,646 434,742 55,460 31,436 50,940 418,006 54,341 33,930 50,343 464,422 55,232 35,248 51,375 433,434 55,050 34,161 49,723 417,941 53,704 34,039 47,374 -15,493 -1,346 -122 -2,349 33,079 94 4,081 -1,923 12 U.S. government assets, other than official reserve assets........................................................... 178,901 127,814 111,164 95,958 93,570 92,744 -826 -85,331 78,373 78,100 80,642 80,369 82,500 82,227 82,691 82,418 84,029 83,756 84,099 83,826 70 70 5,656 5,656 13 14 3 U.S. credits and other long-term assets ..................................................................................... Repayable in dollars................................................................................................................ 4 273 273 273 273 273 273 0 0 16 U.S. foreign currency holdings and U.S. short-term assets 5...................................................... 100,528 47,172 28,664 13,267 9,541 8,645 -896 -90,987 17 18 19 20 21 22 23 U.S. private assets......................................................................................................................... Direct investment at current cost............................................................................................... Foreign securities....................................................................................................................... Bonds....................................................................................................................................... Corporate stocks...................................................................................................................... U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns.......................... U.S. claims reported by U.S. banks and securities brokers, not included elsewhere................. 16,203,636 4,663,142 6,441,350 1,939,912 4,501,438 792,953 4,306,191 16,698,417 4,759,096 6,999,263 1,960,498 5,038,765 869,251 4,070,807 16,124,579 4,826,428 6,662,323 1,946,486 4,715,837 845,301 3,790,527 16,923,754 4,983,377 7,159,326 2,052,037 5,107,289 845,865 3,935,186 17,351,919 5,077,750 7,531,223 2,140,685 5,390,538 844,752 3,898,194 17,726,903 5,160,096 7,824,667 2,174,111 5,650,556 900,300 3,841,840 374,984 82,346 293,444 33,426 260,018 55,548 -56,354 1,148,283 414,608 1,089,873 200,773 889,100 51,799 -407,997 24 Foreign-owned assets in the United States (lines 25+26)........................................................... 25 Financial derivatives (gross negative fair value).......................................................................... 26 Foreign-owned assets in the United States, excluding financial derivatives (lines 27+34).......... 25,366,742 4,630,539 20,736,203 25,235,494 3,873,953 21,361,541 25,280,341 4,088,231 21,192,110 25,660,793 3,873,113 21,787,680 25,501,510 3,561,985 21,939,525 25,895,699 3,206,880 22,688,819 394,189 -355,105 749,294 134,768 -1,068,554 1,203,322 15 Other ....................................................................................................................................... 27 28 29 30 Foreign official assets in the United States................................................................................... U.S. government securities......................................................................................................... U.S. Treasury securities........................................................................................................... Other........................................................................................................................................ 5,256,358 4,235,886 3,620,580 615,306 5,428,122 4,316,906 3,722,551 594,355 5,496,057 4,400,470 3,857,872 542,598 5,640,245 4,487,789 3,958,112 529,677 5,692,448 4,526,896 4,032,204 494,692 5,823,304 4,561,428 4,090,723 470,705 130,856 34,532 58,519 -23,987 436,090 291,010 411,624 -120,614 31 32 33 Other U.S. government liabilities 6.............................................................................................. U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere............. Other foreign official assets....................................................................................................... 119,980 205,973 694,519 123,406 191,515 796,295 125,065 191,921 778,601 127,657 198,987 825,812 128,279 204,401 832,872 128,052 224,462 909,362 -227 20,061 76,490 8,299 -1,572 138,353 34 35 36 37 38 39 40 41 42 Other foreign assets...................................................................................................................... Direct investment at current cost............................................................................................... U.S. Treasury securities.............................................................................................................. U.S. securities other than U.S. Treasury securities..................................................................... Corporate and other bonds...................................................................................................... Corporate stocks...................................................................................................................... U.S. currency.............................................................................................................................. U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns....................... U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere............. 15,479,845 2,879,531 1,386,274 6,151,552 2,894,604 3,256,948 397,086 630,925 4,034,477 15,933,419 2,913,781 1,425,087 6,608,954 2,927,923 3,681,031 415,143 683,453 3,887,001 15,696,053 2,976,814 1,455,648 6,491,227 2,887,851 3,603,376 422,259 680,186 3,669,919 16,147,435 3,029,271 1,517,253 6,794,000 3,008,379 3,785,621 438,415 678,508 3,689,988 16,247,077 3,057,326 1,541,569 6,904,050 3,061,963 3,842,087 454,227 656,522 3,633,383 16,865,515 3,085,679 1,649,654 7,307,973 3,058,746 4,249,227 459,184 633,734 3,729,291 618,438 28,353 108,085 403,923 -3,217 407,140 4,957 -22,788 95,908 767,232 177,795 155,295 752,498 167,359 585,139 57,141 25,597 -401,094 4,513,863 3,510,395 4,084,659 2,502,628 4,975,809 3,855,543 4,169,123 2,529,479 4,679,267 3,764,768 4,224,965 2,585,115 5,058,812 3,961,992 4,370,424 2,630,175 5,249,539 3,923,969 4,453,307 2,650,832 5,518,091 4,261,069 4,535,653 2,679,185 268,552 337,100 82,346 28,353 735,676 413,574 368,648 148,204 Memoranda: 43 Direct investment abroad at market value.......................................................................................... 44 Direct investment in the United States at market value...................................................................... 45 Direct investment abroad at historical cost........................................................................................ 46 Direct investment in the United States at historical cost.................................................................... p Preliminary r Revised 1. The statistics for each quarter are the values as of the last day of the quarter; the first quarter ends on March 31; the second quarter ends on June 30; the third quarter ends on September 30; and the fourth quarter ends on December 31 of the year. 2. U.S. official gold stock is valued at market price. 3. Also includes paid-in capital subscriptions to international financial institutions and outstanding amounts of miscellaneous claims that have been settled through international agreements to be payable to the U.S. government over periods in excess of 1 year. Excludes World War I debts that are not being serviced. 4. Includes indebtedness that the borrower may contractually, or at its option, repay with its currency, with a third country's currency, or by delivery of materials or transfer of services. 5. Includes foreign-currency-denominated assets obtained through temporary reciprocal currency arrangements between the Federal Reserve System and foreign central banks. These assets are included in the investment position at the dollar value established at the time they were received, reflecting the valuation of these assets in the Federal Reserve System’s balance sheet. Changes in exchange rates do not affect this valuation. 6. Includes U.S. government liabilities associated with military sales contracts and U.S. government reserve-related liabilities from allocations of special drawing rights (SDRs). Source: Bureau of Economic Analysis -more- -9Table 2. International Investment Position of the United States at Yearend, 2011 and 2012 [Millions of dollars] Changes in position in 2012 Attributable to: Valuation adjustments Type of investment Line Position, 2011 r 1 Net international investment position of the United States (lines 2+3)................................. Financial flows (a) Exchangerate 1 changes (c) Price changes (b) Position, 2012 r Other 2 changes (d) Total (a+b+c+d) -3,730,590 -439,351 489,566 5,100 -188,618 -133,302 -3,863,892 2 Financial derivatives, net (line 5 less line 25) ......................................................................... 3 Net international investment position, excluding financial derivatives (line 6 less line 26)...... 86,039 -3,816,629 7,064 -446,415 () 489,566 ( 4) 5,100 4 -28,263 -105,039 57,776 -3,921,668 4 U.S.-owned assets abroad (lines 5+6)..................................................................................... 21,636,152 () (3) () 5 6 Financial derivatives (gross positive fair value)...................................................................... U.S.-owned assets abroad, excluding financial derivatives (lines 7+12+17).......................... 4,716,578 16,919,574 (3) 97,469 (3) 990,880 () 5,909 7 U.S. official reserve assets....................................................................................................... 537,037 4,460 33,079 -2,208 8 9 10 11 Gold...................................................................................................................................... Special drawing rights........................................................................................................... Reserve position in the International Monetary Fund.......................................................... Foreign currencies................................................................................................................ 400,355 54,956 30,080 51,646 0 37 4,032 391 33,079 ..... ..... ..... ..... 57 49 -2,314 12 U.S. government assets, other than official reserve assets...................................................... 178,901 -85,331 ..... 13 14 U.S. credits and other long-term assets .............................................................................. Repayable in dollars........................................................................................................... 78,373 78,100 5,656 5,656 ..... ..... 3 7 8 4 3 5 -35,327 -153,291 3 (3) 1,466 21,637,618 3 () 4,024 -1,096,817 1,098,283 3,619,761 18,017,857 0 35,331 572,368 0 0 0 0 33,079 94 4,081 -1,923 433,434 55,050 34,161 49,723 (*) 0 -85,331 93,570 (*) ..... 0 0 5,656 5,656 84,029 83,756 3 6 15 Other ................................................................................................................................ 273 0 ..... (*) ..... 0 273 16 U.S. foreign currency holdings and U.S. short-term assets 9................................................. 100,528 -90,987 ..... (*) ..... -90,987 9,541 17 18 19 20 21 22 23 U.S. private assets................................................................................................................... Direct investment at current cost.......................................................................................... Foreign securities.................................................................................................................. Bonds................................................................................................................................. Corporate stocks................................................................................................................ U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns..................... U.S. claims reported by U.S. banks and securities brokers, not included elsewhere............ 16,203,636 4,663,142 6,441,350 1,939,912 4,501,438 792,953 4,306,191 178,341 388,293 144,823 62,243 82,580 25,723 -380,498 957,801 25,339 932,462 139,503 792,959 ..... ..... 8,117 16,234 -7,412 -973 -6,439 3,194 -3,899 4,024 -15,258 20,000 0 20,000 22,882 -23,600 1,148,283 414,608 1,089,873 200,773 889,100 51,799 -407,997 17,351,919 5,077,750 7,531,223 2,140,685 5,390,538 844,752 3,898,194 24 Foreign-owned assets in the United States (lines 25+26)..................................................... 25,366,742 (3) (3) ( 3) (3) 134,768 25,501,510 25 26 Financial derivatives (gross negative fair value)..................................................................... Foreign-owned assets in the United States, excluding financial derivatives (lines 27+34)..... 4,630,539 20,736,203 (3) 543,884 (3) 501,314 ( 3) 809 (3) 157,315 -1,068,554 1,203,322 3,561,985 21,939,525 27 28 29 30 Foreign official assets in the United States.............................................................................. U.S. government securities................................................................................................... U.S. Treasury securities...................................................................................................... Other.................................................................................................................................. 5,256,358 4,235,886 3,620,580 615,306 393,922 314,660 433,155 -118,495 42,110 -23,650 -21,531 -2,119 58 ..... ..... ..... 0 0 0 0 436,090 291,010 411,624 -120,614 5,692,448 4,526,896 4,032,204 494,692 31 32 33 Other U.S. government liabilities 10...................................................................................... U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere........ Other foreign official assets.................................................................................................. 119,980 205,973 694,519 8,241 -1,572 72,593 ..... ..... 65,760 58 ..... ..... 0 0 0 8,299 -1,572 138,353 128,279 204,401 832,872 34 35 36 37 38 39 40 41 42 Other foreign assets................................................................................................................. Direct investment at current cost.......................................................................................... U.S. Treasury securities........................................................................................................ U.S. securities other than U.S. Treasury securities............................................................... Corporate and other bonds................................................................................................. Corporate stocks................................................................................................................ U.S. currency........................................................................................................................ U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns................. U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere........ 15,479,845 2,879,531 1,386,274 6,151,552 2,894,604 3,256,948 397,086 630,925 4,034,477 149,962 166,411 156,385 196,908 23,584 173,324 57,141 -39,505 -387,378 459,204 20,385 -1,090 439,909 125,774 314,135 ..... ..... ..... 751 606 0 -897 -897 ..... ..... 3,158 -2,116 157,315 -9,607 0 116,578 18,898 97,680 0 61,944 -11,600 767,232 177,795 155,295 752,498 167,359 585,139 57,141 25,597 -401,094 16,247,077 3,057,326 1,541,569 6,904,050 3,061,963 3,842,087 454,227 656,522 3,633,383 Memoranda: 43 Direct investment abroad at market value................................................................................... 44 Direct investment in the United States at market value............................................................... 4,513,863 3,510,395 388,293 166,411 301,652 260,399 48,194 ..... -2,463 -13,236 735,676 413,574 5,249,539 3,923,969 r Revised * Less than $500,000 (+/-) ..... Not applicable 1. Represents gains or losses on foreign-currency-denominated assets and liabilities due to their revaluation at current exchange rates. 2. Includes changes due to year-to-year shifts in the composition of reporting panels, primarily for bank and nonbank estimates, and to the incorporation of more comprehensive survey results. Also includes capital gains and losses of direct investment affiliates and changes in positions that cannot be allocated to financial flows, price changes, or exchange-rate changes. 3. Financial flows and valuation adjustments for financial derivatives are available only on a net basis, which is shown on line 2; they are not separately available for gross positive fair values and gross negative fair values of financial derivatives. Consequently, columns (a) through (d) on lines 4, 5, 24, and 25 are not available. 4. Data are not separately available for the three types of valuation adjustments; therefore, the sum of all three types is shown in column (d). 5. Reflects changes in the value of the official gold stock due to fluctuations in the market price of gold. 6. Reflects changes in gold stock from U.S. Treasury sales of gold medallions and commemorative and bullion coins; also reflects replenishment through open market purchases. These demonetizations/monetizations are not included in international transactions financial flows. 7. Also includes paid-in capital subscriptions to international financial institutions and outstanding amounts of miscellaneous claims that have been settled through international agreements to be payable to the U.S. government over periods in excess of 1 year. Excludes World War I debts that are not being serviced. 8. Includes indebtedness that the borrower may contractually, or at its option, repay with its currency, with a third country's currency, or by delivery of materials or transfer of services. 9. Includes foreign-currency-denominated assets obtained through temporary reciprocal currency arrangements between the Federal Reserve System and foreign central banks. These assets are included in the investment position at the dollar value established at the time they were received, reflecting the valuation of these assets in the Federal Reserve System’s balance sheet. Changes in exchange rates do not affect this valuation. 10. Includes U.S. government liabilities associated with military sales contracts and U.S. government reserve-related liabilities from allocations of special drawing rights (SDRs). Source: Bureau of Economic Analysis