What is an International Investment Position? What is an international investment position?

According to the International Monetary Organization, it is the balance of a country's external financial assets and liabilities. It is not part of the standard composition of the balance of payments, but together with it, it constitutes a country's comprehensive international accounts. Its composition is consistent with the financial accounts in the balance of payments.

A country's current account balances over different periods add up to a variety of assets and liabilities outside the country. An international investment position that reflects the country's assets and liabilities to the rest of the world at a given point in time.

The international investment position is measured by the total amount and distribution of domestic foreign assets and foreign assets at the end of the year. Therefore, the international investment position is a stock concept.

The international investment position at the end of the year can be obtained by adding the capital flows of the current year and the international investment position at the end of the previous year.

The international investment position refers to the economy at a certain point in time.

Resident-to-non-resident financial assets.

and the value and composition of liabilities, which reflect an economy's external financial assets and the stock of liabilities, the difference between which is the net international investment position. A positive value indicates that the country is a net creditor, and a negative value is a net debtor.

The compilation and publication of the international investment position table can provide basic information for a country or region to measure its own foreign-related economic risk status, which has a negative impact on China's macroeconomy.

Analysis and policy decision-making are of great significance.

Together with the Balance of Payments (BOP), the International Investment Position Statement (BOP) constitutes a complete system of international accounts for a country or region. The balance of payments reflects all the economic transactions that occurred between a country or region and the rest of the world during a specific period. The International Investment Position Statement reflects the stock of financial assets and liabilities of a country or region against the rest of the world at a specific point in time.

For example, the balance of payments statement is equivalent to a statement of changes in the financial position of a company, reflecting the flow of transactions; The international investment position statement is equivalent to the balance sheet of the enterprise, reflecting the stock of assets and liabilities.

First of all, the compilation and publication of the international investment position table marks the complete release of the statistical information of China's foreign departments, which is conducive to further improving the statistics of the four major macro accounts, including national accounts, fiscal statistics, monetary and financial statistics, and balance of payments statistics. Secondly, the foreign-related economic situation reflected in the international investment position table is the result of the joint action of various economic factors such as industrial policy, first-class policy, and economic development coordination, which can provide basic information for China's formulation of foreign-related economic development policies and adjustment of foreign assets and liabilities structure. Third, it is necessary to grasp the stock and structure of China's foreign-related economy, so as to facilitate a more systematic and comprehensive reflection of China's foreign-related economic development and risk situation. In addition, with the continuous expansion of China's opening up to the outside world and the increasing status of the world economy, China's external assets and liabilities are becoming more and more important for analyzing the global financial capital situation.