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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, TUESDAY, JUNE 30, 2020 Technical: Media: Christopher Gohrband Elena Nguyen Doug Weinberg (Direct Investment) Jeannine Aversa (301) 278-9564 (301) 278-9555 (301) 278-9590 (301) 278-9003 BEA 20-31 Christopher.Gohrband@bea.gov Elena.Nguyen@bea.gov Douglas.Weinberg@bea.gov Jeannine.Aversa@bea.gov U.S. International Investment Position First Quarter 2020, Year 2019, and Annual Update First Quarter 2020 The U.S. net international investment position, the difference between U.S. residents’ foreign financial assets and liabilities, was –$12.06 trillion at the end of the first quarter of 2020, according to statistics released by the U.S. Bureau of Economic Analysis (BEA). Assets totaled $26.77 trillion and liabilities were $38.82 trillion. At the end of the fourth quarter of 2019, the net investment position was –$11.05 trillion (Table 1). The –$1.01 trillion change in the net investment position from the fourth quarter of 2019 to the first quarter of 2020 came from net financial transactions of –$184.2 billion and net other changes in position, such as price and exchange rate changes, of –$822.8 billion (Table A). Coronavirus (COVID-19) Impact on First Quarter 2020 International Investment Position In the first quarter of 2020, the declines in U.S. assets and liabilities reflect the impact of the COVID-19 pandemic. The disruption to global production and financial markets led to sharp declines in global stock prices, the appreciation of the U.S. dollar against most foreign currencies, and a shortage of U.S. dollar liquidity in foreign money markets. The stock price declines and the appreciation of the U.S. dollar are reflected in price changes and exchange rate changes. Currency swap transactions between the U.S. Federal Reserve System and several foreign central banks to alleviate the shortage of U.S. dollar liquidity contributed to record levels of U.S. acquisition of assets and U.S. incurrence of liabilities. The full economic effects of the COVID-19 pandemic cannot be quantified in the statistics for the first quarter because the impacts are generally embedded in source data and cannot be separately identified. For more information on the currency swaps, see the technical note that accompanied the June 19 international transactions accounts news release. Table A. Quarterly Change in the U.S. Net International Investment Position Billions of dollars, not seasonally adjusted Position, 2019 Q4 U.S. net international investment position Net position excluding financial derivatives Financial derivatives other than reserves, net -11,050.5 -11,070.7 20.2 Change in position in 2020 Q1 Attributable to: Total Financial Other changes transactions in position 1 -1,007.0 -184.2 -822.8 -1,022.1 -162.4 -859.8 15.2 -21.8 37.0 -12,057.5 -12,092.8 35.3 Position, 2020 Q1 U.S. assets Assets excluding financial derivatives Financial derivatives other than reserves 29,152.8 27,362.4 1,790.4 -2,385.7 -3,595.8 1,210.1 (2) 739.9 (2) (2) -4,335.7 (2) 26,767.1 23,766.6 3,000.5 U.S. liabilities Liabilities excluding financial derivatives Financial derivatives other than reserves 40,203.3 38,433.0 1,770.3 -1,378.7 -2,573.6 1,194.9 (2) 902.3 (2) (2) -3,475.9 (2) 38,824.6 35,859.4 2,965.2 1. Disaggregation of other changes in position into price changes, exchange rate changes, and other changes in volume and valuation is only presented for annual statistics (see table B and table 2 in this release). 2. Financial transactions and other changes in financial derivatives positions are available only on a net basis; they are not separately available for U.S. assets and U.S. liabilities. U.S. assets decreased by $2.39 trillion, to a total of $26.77 trillion, at the end of the first quarter, mostly reflecting decreases in portfolio investment and direct investment assets that were partly offset by increases in financial derivatives and in other investment assets. Portfolio investment assets decreased by $2.39 trillion, to $10.99 trillion, and direct investment assets decreased by $1.82 trillion, to $6.98 trillion, reflecting sharp decreases in foreign stock prices and the depreciation of major foreign currencies against the U.S. dollar that lowered the value of these assets in dollar terms. These large changes in asset prices reflected a sudden decrease in production and earnings as global economic activity was disrupted by the COVID-19 pandemic. –2– U.S. liabilities decreased by $1.38 trillion, to a total of $38.82 trillion, at the end of the first quarter, mostly reflecting decreases in direct investment and portfolio investment liabilities that were partly offset by increases in financial derivatives and in other investment liabilities. Direct investment liabilities decreased by $1.78 trillion, to $8.77 trillion, and portfolio investment liabilities decreased by $1.61 trillion, to $19.78 trillion, mostly reflecting decreases in U.S. stock prices amid the COVID-19 pandemic. Annual Update The statistics in this release reflect the annual update of the U.S. international investment position (IIP). With this update, BEA has incorporated newly available and revised source data, and has reclassified certain U.S. government capital subscriptions or other contributions to international organizations from loan assets to other equity assets, a new category within other investment assets. The reclassification of other equity assets results in the addition of line items in the IIP and the international transactions accounts (ITAs) for transactions and positions in other equity assets and liabilities. Also, BEA updated other equity and loan assets to incorporate U.S. government transactions and positions that were not previously included. Quarterly statistics are revised for the first quarter of 2006 to the fourth quarter of 2019. Annual statistics are revised for 1976-2019. For 1976-1999, the reclassification of other equity assets from loan assets results in offsetting revisions between these two investment categories, leaving the statistics for U.S. assets and for the net IIP unchanged. For 2000-2015, the statistics for U.S. assets and for the net IIP are revised up by an average of $0.8 billion annually, reflecting the incorporation of U.S. government transactions and positions that were not previously included in other equity and loan assets. For 2016-2019, revisions to the IIP statistics reflect newly available and revised source data that impact all major categories of assets and liabilities (Table 3). Additional information on these changes is published in “Preview of the 2020 Annual Update of the International Economic Accounts” in the April 2020 issue of the Survey of Current Business. An article describing the revisions to the statistics will be published in the July 2020 issue. –3– Newly Available and Revised Source Data: Key Providers and Years Affected Agency BEA U.S. Department of the Treasury Data Quarterly direct investment surveys (direct investment assets and liabilities) Aggregate Holdings of Long-Term Securities by U.S. and Foreign Residents (portfolio investment assets and liabilities) Foreign-Residents’ Holdings of U.S. Securities, including Selected Money Market Instruments (portfolio investment liabilities) U.S. Ownership of Foreign Securities, including Selected Money Market Instruments (portfolio investment assets) Reports by Financial Institutions of Liabilities to, and Claims on, Foreign Residents by U.S. Residents (portfolio investment and other investment assets and liabilities) Reports of Liabilities to, and Claims on, Unaffiliated Foreign Residents by U.S. Resident Non-Financial Institutions (portfolio investment and other investment assets and liabilities) Reports of Holdings of, and Transactions in, Financial Derivatives Contracts with Foreign Residents (financial derivatives assets and liabilities) Years affected 2016–2019 2018–2019 2019 2018 2017–2019 2017–2019 2018–2019 Annual Update for Year 2019 The U.S. net international investment position was –$11.05 trillion at the end of 2019 compared to –$9.67 trillion at the end of 2018 (Table 2). The –$1.38 trillion change in the net investment position from the end of 2018 to the end of 2019 came from net financial transactions of –$395.5 billion and net other changes in position, such as price and exchange rate changes, of –$980.5 billion (Table B). U.S. assets increased by $3.92 trillion, to a total of $29.15 trillion, at the end of 2019, reflecting increases in all major categories of assets, particularly in portfolio investment and direct investment assets. Portfolio investment assets increased by $1.94 trillion, to $13.38 trillion, and direct investment assets increased by $1.35 trillion, to $8.80 trillion, driven mainly by foreign stock price increases. U.S. liabilities increased by $5.30 trillion, to a total of $40.20 trillion, at the end of 2019, reflecting increases in all major categories of liabilities, particularly in portfolio investment and direct investment liabilities. Portfolio investment liabilities increased by $2.55 trillion, to $21.39 trillion, and direct investment liabilities increased by $2.15 trillion, to $10.55 trillion, driven mainly by U.S. stock price increases. –4– Table B. Annual Change in the U.S. Net International Investment Position Billions of dollars Position, 2018 U.S. net investment position Net position excl. derivatives Financial derivatives, net Total Change in position in 2019 Attributable to: Other changes in position FinanChanges Position, 2019 cial Exchange in volume Price transTotal rate and changes actions changes valuation n.i.e. -395.5 -980.5 (1) (1) (1) -11,050.5 -357.2 -997.0 -1,104.9 119.5 -11.5 -11,070.7 -38.3 16.4 (1) (1) (1) 20.2 -9,674.4 -9,716.5 42.0 -1,376.1 -1,354.2 -21.9 U.S. assets Assets excl. derivatives Financial derivatives 25,233.8 23,784.2 1,449.6 3,919.0 3,578.2 340.8 (2) 440.8 (2) (2) 3,137.4 (2) (2) 3,080.1 (2) (2) 128.3 (2) (2) -71.0 (2) 29,152.8 27,362.4 1,790.4 U.S. liabilities Liabilities excl. derivatives Financial derivatives 34,908.2 33,500.7 1,407.5 5,295.1 4,932.4 362.7 (2) 798.0 (2) (2) 4,134.4 (2) (2) 4,185.0 (2) (2) 8.8 (2) (2) -59.4 (2) 40,203.3 38,433.0 1,770.3 1. Data are not separately available for price changes, exchange rate changes, and changes in volume and valuation n.i.e. (not included elsewhere). 2. Financial transactions and other changes in financial derivatives positions are available only on a net basis; they are not separately available for U.S. assets and U.S. liabilities. * * * Next release: September 29, 2020, at 8:30 A.M. EDT U.S. International Investment Position, Second Quarter 2020 * * –5– * Additional Information Price changes (only presented for annual statistics in the June news release) are changes in the value of an asset or liability due to changes in the market price of a financial instrument. Resources • • • • • • • Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email subscription service, or following BEA on Twitter @BEA_News. Historical time series for these estimates can be accessed in BEA’s interactive data application. Access BEA data by registering for BEA’s Data application programming interface (API). For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business. BEA's news release schedule. More information on these international investment position statistics will be provided next month in the Survey of Current Business. More information on the international investment position accounts and a description of the estimation methods used to compile them is provided in U.S. International Economic Accounts: Concepts and Methods. Exchange rate changes (only presented for annual statistics in the June news release) are changes in the value of foreigncurrency denominated assets and liabilities due to changes in the values of foreign currencies relative to the value of the U.S. dollar. Changes in volume and valuation n.i.e. (only presented for annual statistics in the June news release) reflect changes in position due to year-to-year shifts in the composition of reporting panels, the incorporation of more comprehensive annual and benchmark survey results, and revaluations (holding gains and losses) on assets and liabilities that are not explained by price changes or exchange rate changes. Functional categories are the primary classification system used in the IIP and in the financial account of the ITAs. The five functional categories are direct investment, portfolio investment, financial derivatives other than reserves, other investment, and reserve assets. While the functional categories are based on features that are relevant for understanding cross-border financial transactions and positions, they also take into account some aspects of the relationship between transactors and the economic motivation for the investment. Within the functional categories, the IIP accounts are classified by type of financial instrument. Definitions The international investment position (IIP) is a statistical balance sheet that presents the dollar value of U.S. financial assets and liabilities with respect to foreign residents at a specific point in time. BEA presents IIP statistics at the end of a quarter or year (March, June, September, and December). For the June release, BEA also presents statistics on changes in the yearend position that are disaggregated into financial transactions, price changes, exchange rate changes, and changes in volume and valuation not included elsewhere (n.i.e.). Financial transactions are transactions between U.S. residents and nonresidents in financial assets and liabilities. They are also recorded in the financial account of the international transactions accounts (ITAs). See Related Statistics below. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise resident in another economy. Ownership or control of 10 percent or more of the voting securities of an entity in another economy is the threshold for separating direct investment from other types of investment. Direct investment positions include positions in equity and debt instruments. BEA’s IIP statistics feature the market value measure of direct investment positions, a measure that values owner’s equity at current-period prices using indexes of stock market prices. Other changes in position are changes in the value of U.S. assets or liabilities arising from any source besides a financial transaction. Other changes in position include price changes, exchange rate changes, and changes in volume and valuation not included elsewhere (n.i.e.). Portfolio investment consists of cross-border positions involving equity and investment fund shares and debt securities, excluding those included in direct investment or reserve assets. Debt securities are classified by original maturity (short term vs. long term at the time of issue). The U.S. net international investment position is defined as the value of U.S. assets less the value of U.S. liabilities. –6– Financial derivatives other than reserves consist of crossborder positions arising from financial contracts that are linked to underlying financial instruments, commodities, or indicators. Positions in financial derivatives consist of contracts with positive and negative fair values. A contract with a positive fair value is a U.S. asset and represents the amount that a foreign resident would have to pay to a U.S. counterparty if the contract were terminated or settled. A contract with a negative fair value is a U.S. liability and represents the amount that a U.S. resident would have to pay to a foreign counterparty if the contract were terminated or settled. The gross positive (negative) fair value is the sum across all contracts with positive (negative) fair values. Fair values differ from notional values, which are the underlying amounts used to calculate payments on contracts. Gross positive and gross negative fair values for financial derivatives positions are available separately in table 1. However, transactions and other changes in financial derivatives positions are only available for the net position in financial derivatives. For other changes in position for financial derivatives presented in the June news release, statistics are not separately available for price changes, exchange rate changes, and changes in volume and valuation n.i.e. Release and update schedule Preliminary quarterly IIP account statistics are released in March, June, September, and December, approximately 90 days after the end of the reference quarter. These statistics are updated the following quarter to incorporate new and revised source data. Quarterly statistics are open for revision for at least the prior three years in annual updates released in June. Preliminary annual statistics are released in March reflecting positions at the end of the fourth quarter of the previous year. These annual statistics are open for revision for at least the prior three years in subsequent annual updates. Related statistics The IIP statistics comprise one part of a broader set of U.S. international economic accounts that, taken together, provide a comprehensive, integrated and detailed picture of U.S. international economic activities. The international transactions accounts (ITAs) are released quarterly. Financial transactions reported in the financial account of the ITAs are one type of change in position recorded in the IIP. Financial transactions are transactions between U.S. residents and nonresidents for direct investment, portfolio investment, other investment, reserve assets, and financial derivatives. Other investment includes cross-border positions other than those included in direct investment, portfolio investment, financial derivatives, and reserve assets. Other investment positions consist of positions in other equity (equity not in the form of securities), currency and deposits, loans, insurance technical reserves, trade credit and advances, and, for liabilities, special drawing rights allocations. Statistics on direct investment and multinational enterprises (MNEs) include annual statistics on the activities of U.S. MNEs and U.S. affiliates of foreign MNEs, detailed annual and quarterly statistics on direct investment, and annual statistics on new foreign direct investment in the United States. Reserve assets are those external assets that are readily available to and controlled by U.S. monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to affect the currency exchange rate, and for other related purposes such as maintaining confidence in the currency and the economy and serving as a basis for foreign borrowing. The major published components are monetary gold, International Monetary Fund (IMF) special drawing rights (SDRs), reserve position in the IMF, and other reserve assets. Statistics on international services include detailed annual information on trade in services and on services supplied through the channel of direct investment by affiliates of multinational enterprises. U.S. international trade in goods and services, released by BEA and the U.S. Census Bureau, provides monthly statistics on trade in goods and services. List of News Release Tables Table 1. U.S. Net International Investment Position at the End of the Period Table 2. Change in the Yearend U.S. Net International Investment Position Table 3. Updates to the U.S. Net International Investment Position at Yearend, 2016-2019 –7– Table 1. U.S. Net International Investment Position at the End of the Period [Billions of dollars, not seasonally adjusted] Line Type of investment 2019 2018 Q4 r Q1 r Q2 r Change: 2019Q4 to 2020Q1 2020 Q3 r Q4 r Q1 p Change: 2018Q4 to 2019Q4 Line 1 U.S. net international investment position (line 4 less line 36) -9,674.4 -10,145.0 -10,487.9 -10,935.4 -11,050.5 -12,057.5 -1,007.0 -1,376.1 1 2 Net international investment position excluding financial derivatives (line 5 less line 37) -9,716.5 -10,180.6 -10,503.6 -10,965.8 -11,070.7 -12,092.8 -1,022.1 -1,354.2 2 3 Financial derivatives other than reserves, net (line 6 less line 38) 42.0 35.6 15.8 30.4 20.2 35.3 15.2 -21.9 3 4 U.S. assets 25,233.8 26,932.6 27,897.4 28,174.3 29,152.8 26,767.1 -2,385.7 3,919.0 4 5 Assets excluding financial derivatives (sum of lines 7, 10, 21, and 27) 23,784.2 25,432.5 26,125.3 26,096.0 27,362.4 23,766.6 -3,595.8 3,578.2 5 6 Financial derivatives other than reserves, gross positive fair value (line 15) 1,449.6 1,500.1 1,772.2 2,078.3 1,790.4 3,000.5 1,210.1 340.8 6 By functional category: 7 7,443.9 8,094.9 8,394.8 8,305.2 8,798.7 6,982.0 -1,816.6 1,354.7 7 8 Direct investment at market value Equity 6,149.4 6,836.3 7,063.8 6,996.0 7,485.0 5,700.5 -1,784.6 1,335.6 8 9 Debt instruments 1,294.5 1,258.6 1,331.0 1,309.1 1,313.6 1,281.6 -32.1 19.1 9 10 Portfolio investment 11,433.6 12,294.7 12,655.6 12,601.4 13,375.9 10,987.4 -2,388.5 1,942.3 10 11 Equity and investment fund shares 7,899.6 8,687.2 8,894.6 8,720.9 9,459.1 7,361.2 -2,097.9 1,559.5 11 12 Debt securities 3,534.0 3,607.5 3,761.0 3,880.5 3,916.8 3,626.2 -290.6 382.8 12 13 Short term 651.6 668.5 693.0 752.9 734.0 669.5 -64.5 82.4 13 14 Long term 2,882.4 2,939.0 3,068.0 3,127.6 3,182.8 2,956.7 -226.0 300.3 14 1,449.6 1,500.1 1,772.2 2,078.3 1,790.4 3,000.5 1,210.1 340.8 15 1,408.9 1,469.1 1,733.5 2,038.0 1,755.3 2,912.7 1,157.4 346.4 16 15 16 Financial derivatives other than reserves, gross positive fair value Over-the-counter contracts 17 Single-currency interest rate contracts 928.8 1,027.0 1,291.9 1,561.7 1,297.5 2,130.8 833.3 368.7 17 18 Foreign exchange contracts 303.6 284.4 281.0 313.5 288.1 483.0 194.9 -15.5 18 19 Other contracts 176.4 157.7 160.6 162.8 169.7 298.9 129.2 -6.8 19 40.7 31.0 38.7 40.3 35.1 87.8 52.7 -5.6 20 4,457.6 4,590.2 4,589.3 4,684.6 4,673.4 5,259.7 586.3 215.8 21 66.7 66.7 68.0 68.0 68.0 69.3 1.3 1.4 22 20 21 Exchange-traded contracts Other investment 22 Other equity 23 Currency and deposits 1,854.1 1,864.0 1,904.0 1,929.7 2,010.6 2,435.0 424.3 156.5 23 24 Loans 2,484.4 2,609.1 2,567.7 2,632.9 2,541.4 2,706.9 165.5 56.9 24 25 Insurance technical reserves n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 26 Trade credit and advances 52.4 50.4 49.6 54.0 53.3 48.5 -4.8 1.0 26 27 Reserve assets 449.1 452.7 485.6 504.9 514.4 537.5 23.1 65.3 27 28 Monetary gold 334.5 338.7 368.5 388.4 396.1 420.7 24.6 61.6 28 29 Special drawing rights 50.8 50.8 50.9 50.0 50.7 50.1 -0.6 -0.1 29 30 Reserve position in the International Monetary Fund 22.0 22.1 24.4 25.6 26.2 25.5 -0.7 4.1 30 31 Other reserve assets 41.8 41.1 41.9 40.8 41.4 41.1 -0.3 -0.4 31 32 Currency and deposits 27.3 27.4 28.6 28.1 29.3 29.5 0.3 1.9 32 33 Securities 14.5 13.7 13.3 12.8 12.1 11.6 -0.5 -2.3 33 34 Financial derivatives ….. ….. ….. ….. ….. ….. ….. ….. 34 35 Other claims 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 35 36 U.S. liabilities 34,908.2 37,077.6 38,385.3 39,109.7 40,203.3 38,824.6 -1,378.7 5,295.1 36 37 Liabilities excluding financial derivatives (sum of lines 39, 42, and 57) 33,500.7 35,613.1 36,628.9 37,061.9 38,433.0 35,859.4 -2,573.6 4,932.4 37 38 Financial derivatives other than reserves, gross negative fair value (line 51) 1,407.5 1,464.5 1,756.4 2,047.9 1,770.3 2,965.2 1,194.9 362.7 38 By functional category: 39 8,401.7 9,368.8 9,730.9 9,858.2 10,547.1 8,769.8 -1,777.3 2,145.4 39 40 Direct investment at market value Equity 6,725.5 7,645.7 7,961.9 8,061.9 8,764.2 7,024.7 -1,739.4 2,038.7 40 41 Debt instruments 1,676.2 1,723.1 1,769.0 1,796.3 1,782.9 1,745.1 -37.8 106.7 41 42 Portfolio investment 18,844.2 19,958.8 20,537.5 20,805.0 21,389.8 19,778.4 -1,611.4 2,545.6 42 7,539.2 8,264.8 8,610.3 8,608.4 9,220.2 7,648.2 -1,572.0 1,681.0 43 11,304.9 11,694.0 11,927.1 12,196.6 12,169.6 12,130.2 -39.4 864.6 44 982.2 997.4 925.3 985.2 937.3 926.1 -11.2 -44.9 45 43 Equity and investment fund shares 44 Debt securities 45 Short term 46 Treasury bills and certificates 746.7 765.4 707.8 750.1 706.2 719.6 13.4 -40.4 46 47 Other short-term securities 235.5 231.9 217.5 235.1 231.1 206.5 -24.6 -4.5 47 10,322.7 10,696.7 11,001.8 11,211.4 11,232.3 11,204.1 -28.2 909.5 48 48 Long term 49 Treasury bonds and notes 5,523.5 5,708.6 5,918.0 6,023.3 5,984.6 6,090.7 106.1 461.1 49 50 Other long-term securities 4,799.3 4,988.1 5,083.8 5,188.1 5,247.7 5,113.4 -134.3 448.4 50 1,407.5 1,464.5 1,756.4 2,047.9 1,770.3 2,965.2 1,194.9 362.7 51 1,366.2 1,434.8 1,718.6 2,010.1 1,738.0 2,878.1 1,140.1 371.8 52 51 52 Financial derivatives other than reserves, gross negative fair value Over-the-counter contracts 53 Single-currency interest rate contracts 893.7 1,001.6 1,278.3 1,547.5 1,276.3 2,131.3 855.1 382.6 53 54 Foreign exchange contracts 299.0 277.0 284.8 304.8 296.1 471.0 174.9 -2.9 54 55 Other contracts 173.6 156.2 155.5 157.7 165.7 275.8 110.1 -8.0 55 41.3 29.7 37.8 37.8 32.2 87.1 54.8 -9.1 56 6,254.8 6,285.5 6,360.5 6,398.6 6,496.2 7,311.2 815.1 241.3 57 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 58 56 57 Exchange-traded contracts Other investment 58 Other equity 59 Currency and deposits 3,257.2 3,230.2 3,345.4 3,433.8 3,458.8 3,958.9 500.1 201.6 59 60 Loans 2,749.7 2,800.4 2,762.0 2,714.0 2,782.5 3,097.3 314.8 32.7 60 61 Insurance technical reserves n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 61 62 Trade credit and advances 198.8 205.8 204.0 202.7 206.1 206.8 0.7 7.3 62 63 Special drawing rights allocations 49.1 49.0 49.1 48.1 48.8 48.2 -0.6 -0.3 63 p Preliminary r Revised n.a. Not available ..... Not applicable Note: Details may not add to totals because of rounding. Source: U.S. Bureau of Economic Analysis –8– Table 2. Change in the Yearend U.S. Net International Investment Position [Billions of dollars] Line Yearend position, 2018 Type of investment Change in position in 2019 Attributable to: Other changes in position Total Financial transactions Exchange rate Price changes Total changes 1 4 valuation n.i.e. 4 Yearend position, 2019 Changes in volume and Line 2 4 1 U.S. net international investment position (line 4 less line 36) -9,674.4 -1,376.1 -395.5 -980.5 () () () -11,050.5 1 2 -9,716.5 -1,354.2 -357.2 -997.0 -1,104.9 119.5 -11.5 3 Net international investment position excluding financial derivatives (line 5 less line 37) Financial derivatives other than reserves, net (line 6 less line 38) 3 42.0 -21.9 -38.3 3 16.4 3 -11,070.7 2 4 () 4 () 4 () 20.2 3 3 3 3 4 U.S. assets 25,233.8 3,919.0 () () () () () 29,152.8 4 5 23,784.2 3,578.2 440.8 3,137.4 3,080.1 128.3 -71.0 27,362.4 5 6 Assets excluding financial derivatives (sum of lines 7, 10, 21, and 27) Financial derivatives other than reserves, gross positive fair value (line 15) 3 3 3 3 3 1,449.6 340.8 () () () () () 1,790.4 6 By functional category: 7 7,443.9 1,354.7 188.5 1,166.3 1,104.5 40.5 21.3 8,798.7 7 8 Direct investment at market value Equity 6,149.4 1,335.6 173.5 1,162.1 1,104.5 40.5 17.1 7,485.0 8 9 Debt instruments 1,294.5 19.1 14.9 4.2 ….. ….. 4.2 1,313.6 9 10 Portfolio investment 11,433.6 1,942.3 46.6 1,895.7 1,914.0 86.6 -104.9 13,375.9 10 11 Equity and investment fund shares 7,899.6 1,559.5 -191.3 1,750.8 1,682.8 77.5 -9.4 9,459.1 11 12 Debt securities 3,534.0 382.8 237.9 144.9 231.2 9.2 -95.5 3,916.8 12 13 Short term 651.6 82.4 167.6 -85.2 ….. 14.8 -100.0 734.0 13 14 Long term 2,882.4 300.3 70.3 230.0 231.2 -5.7 4.5 15 16 17 18 19 20 21 Financial derivatives other than reserves, gross positive fair value Over-the-counter contracts 1,449.6 1,408.9 Single-currency interest rate contracts 928.8 Foreign exchange contracts 303.6 Other contracts Exchange-traded contracts Other investment 3,182.8 14 340.8 3 () 3 () 3 () 3 () 3 () 1,790.4 15 346.4 3 () 3 () 3 () 3 () 3 () 1,755.3 16 368.7 3 () 3 () 3 () 3 () 3 () 1,297.5 17 -15.5 3 () 3 () 3 () 3 () 3 () 288.1 18 3 3 3 3 3 176.4 -6.8 () () () () () 169.7 19 40.7 -5.6 (3 ) (3) (3) (3 ) (3) 35.1 20 4,457.6 215.8 201.1 14.8 0.0 2.1 12.7 4,673.4 21 66.7 1.4 1.4 0.0 0.0 ….. 0.0 68.0 22 22 Other equity 23 Currency and deposits 1,854.1 156.5 132.6 23.9 ….. (*) 23.9 2,010.6 23 24 Loans 2,484.4 56.9 66.1 -9.2 ….. 2.0 -11.2 2,541.4 24 25 Insurance technical reserves n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 26 Trade credit and advances 52.4 1.0 1.0 (*) ….. (*) 0.0 53.3 26 27 Reserve assets 449.1 65.3 4.7 60.7 61.6 -1.0 0.0 514.4 27 28 Monetary gold 334.5 61.6 0.0 61.6 61.6 ….. 0.0 396.1 28 29 Special drawing rights 50.8 -0.1 0.2 -0.3 ….. -0.3 0.0 50.7 29 30 Reserve position in the International Monetary Fund 22.0 4.1 4.3 -0.1 ….. -0.1 0.0 26.2 30 31 Other reserve assets 41.8 -0.4 0.2 -0.5 0.0 -0.5 0.0 41.4 31 32 Currency and deposits 27.3 1.9 (*) 1.9 ….. -0.3 2.2 29.3 32 33 Securities 14.5 -2.3 0.2 -2.5 0.0 -0.2 -2.2 12.1 33 34 Financial derivatives ….. ….. ….. ….. ….. ….. ….. ….. 34 35 Other claims 0.0 0.0 0.0 0.0 ..... 0.0 0.0 0.0 35 36 U.S. liabilities 34,908.2 5,295.1 (3 ) (3) (3) (3 ) (3) 40,203.3 36 37 Liabilities excluding financial derivatives (sum of lines 39, 42, and 57) 33,500.7 4,932.4 798.0 4,134.4 4,185.0 8.8 -59.4 38,433.0 37 38 Financial derivatives other than reserves, gross negative fair value (line 51) 1,407.5 362.7 (3 ) (3) (3) (3 ) (3) 1,770.3 38 By functional category: 39 8,401.7 2,145.4 351.6 1,793.8 1,743.2 ….. 50.5 10,547.1 39 40 Direct investment at market value Equity 6,725.5 2,038.7 290.3 1,748.4 1,743.2 ….. 5.2 8,764.2 40 41 Debt instruments 1,676.2 106.7 61.3 45.4 ….. ….. 45.4 1,782.9 41 42 Portfolio investment 18,844.2 2,545.6 180.0 2,365.6 2,441.8 9.1 -85.3 21,389.8 42 7,539.2 1,681.0 -244.1 1,925.1 1,944.3 ….. -19.3 9,220.2 43 11,304.9 864.6 424.0 440.6 497.5 9.1 -66.0 12,169.6 44 982.2 -44.9 -43.2 -1.8 ….. -1.8 0.0 937.3 45 43 Equity and investment fund shares 44 Debt securities 45 Short term 46 Treasury bills and certificates 746.7 -40.4 -40.4 0.0 ….. ….. 0.0 706.2 46 47 Other short-term securities 235.5 -4.5 -2.7 -1.8 ….. -1.8 0.0 231.1 47 10,322.7 909.5 467.2 442.3 497.5 10.9 -66.0 11,232.3 48 48 Long term 49 Treasury bonds and notes 5,523.5 461.1 266.1 195.0 198.6 ….. -3.6 5,984.6 49 50 Other long-term securities 4,799.3 448.4 201.1 247.3 298.9 10.9 -62.4 51 52 53 54 55 56 57 Financial derivatives other than reserves, gross negative fair value Over-the-counter contracts 5,247.7 50 362.7 3 () 3 () 3 () 3 () 3 () 1,770.3 51 371.8 3 () 3 () 3 () 3 () 3 () 1,738.0 52 382.6 3 () 3 () 3 () 3 () 3 () 1,276.3 53 -2.9 3 () 3 () 3 () 3 () 3 () 296.1 54 -8.0 3 () 3 () 3 () 3 () 3 () 165.7 55 41.3 -9.1 3 () 3 () 3 () 3 () 3 () 32.2 56 6,254.8 241.3 266.4 -25.0 ….. -0.3 -24.7 6,496.2 57 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 58 1,407.5 1,366.2 Single-currency interest rate contracts 893.7 Foreign exchange contracts 299.0 Other contracts 173.6 Exchange-traded contracts Other investment 58 Other equity 59 Currency and deposits 3,257.2 201.6 204.1 -2.5 ….. -0.7 -1.8 3,458.8 59 60 Loans 2,749.7 32.7 52.4 -19.7 ….. 0.6 -20.3 2,782.5 60 61 Insurance technical reserves n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 61 62 Trade credit and advances 198.8 7.3 9.8 -2.6 ….. (*) -2.6 206.1 62 63 Special drawing rights allocations 49.1 -0.3 0.0 -0.3 ….. -0.3 0.0 48.8 63 r Revised n.a. Not available ..... Not applicable (*) Value between zero and +/- $50 million. 1. Represents gains or losses on foreign currency denominated assets and liabilities due to their revaluation at current exchange rates. 2. Changes in volume and valuation n.i.e. (not included elsewhere) includes changes due to year to year shifts in the composition of reporting panels 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 transactions, price changes, or exchange rate changes. 3. Financial transactions and other changes in financial derivatives positions are available only on a net basis, which is shown on line 3; they are not separately available for gross positive fair values and gross negative fair values of financial derivatives. 4. Data are not separately available for price changes, exchange rate changes, and changes in volume and valuation n.i.e. Note: Details may not add to totals because of rounding. Source: U.S. Bureau of Economic Analysis –9– Table 3. Updates to the U.S. Net International Investment Position at Yearend, 2016-2019 [Billions of dollars] 2016 Line Type of investment Previously published Revised 2017 Revision Previously published Revised 2018 Revision Previously published 2019 Revised Revision Previously published Revised Revision 1 U.S. net international investment position (line 4 less line 10) -8,192.2 -8,129.3 62.9 -7,743.2 -7,622.2 121.0 -9,554.7 -9,674.4 -119.7 -10,991.4 -11,050.5 -59.1 2 Net international investment position excluding financial derivatives -8,250.3 -8,187.5 62.9 -7,780.9 -7,659.9 121.0 -9,592.4 -9,716.5 -124.1 -11,011.5 -11,070.7 -59.1 3 Financial derivatives other than reserves, net (line 7 less line 13) 58.2 58.2 0.0 37.6 37.6 0.0 37.7 42.0 4.4 20.2 20.2 0.0 24,059.7 24,031.5 -28.2 27,772.9 27,772.3 -0.5 25,241.5 25,233.8 -7.7 29,317.5 29,152.8 -164.7 4 U.S. assets 5 Direct investment at market value 6 Portfolio investment 7,421.9 7,403.2 -18.7 8,910.0 8,923.1 13.1 7,503.9 7,443.9 -60.0 8,837.7 8,798.7 -39.0 10,011.4 10,011.4 0.0 12,571.5 12,571.5 0.0 11,491.4 11,433.6 -57.8 13,510.3 13,375.9 -134.4 7 Financial derivatives other than reserves, gross positive fair value 2,220.5 2,220.5 0.0 1,560.8 1,560.8 0.0 1,492.3 1,449.6 -42.7 1,790.4 1,790.4 0.0 8 Other investment 3,998.7 3,990.7 -8.1 4,280.9 4,267.3 -13.6 4,304.8 4,457.6 152.8 4,664.7 4,673.4 8.7 9 Reserve assets 407.2 405.8 -1.4 449.7 449.7 0.0 449.1 449.1 0.0 514.4 514.4 0.0 32,251.8 32,160.8 -91.1 35,516.1 35,394.5 -121.6 34,796.2 34,908.2 112.0 40,308.8 40,203.3 -105.6 10 U.S. liabilities 11 Direct investment at market value 12 Portfolio investment 13 14 7,596.1 7,510.5 -85.6 8,925.5 8,814.8 -110.6 8,483.3 8,401.7 -81.6 10,581.8 10,547.1 -34.7 17,360.0 17,360.0 0.0 19,398.3 19,398.3 0.0 18,715.8 18,844.2 128.3 21,480.3 21,389.8 -90.5 Financial derivatives other than reserves, gross negative fair value 2,162.3 2,162.3 0.0 1,523.2 1,523.2 0.0 1,454.6 1,407.5 -47.0 1,770.3 1,770.3 0.0 Other investment 5,133.5 5,128.0 -5.4 5,669.2 5,658.3 -10.9 6,142.4 6,254.8 112.4 6,476.4 6,496.2 19.7 Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis – 10 –
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