Financial account

This section includes net acquisition and disposal of financial assets and liabilities under the financial account of the balance of payments. It also contains data on the stocks of assets and liabilities under the international investment position statement and the changes in stocks due to foreign exchange and price revaluation, as well as other changes in volume. The financial transactions and positions are primarily classified by type of investment or functional category, then by resident sector and financial instrument.

A direct investment is a cross-border investment associated with a resident in one economy having control of, or a significant degree of influence over, the management of an enterprise that is resident in another economy.

Portfolio investments are cross-border transactions and positions involving debt or equity securities, other than those included in direct investment or reserve assets.

Financial derivatives (other than reserves) and employee stock options largely coincide with the corresponding financial instrument class. This category relates to risk transfer rather than supply of funds or other resources.

Other investment is a residual category that includes positions and transactions other than those included in direct investment, portfolio investment, financial derivatives and employee stock options. It also includes reserve assets.

Reserve assets are external assets that are readily available to, and controlled by, monetary authorities for meeting balance of payments financing needs, intervening 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).