The International Investment Position of the United States at Yearend 2000

The International Investment Position of the United States at Yearend 2000 – Statistical Data Included

Harlan W. King

Christopher A. Gohrband directed the preparation of several of the accounts, and Douglas B. Weinberg prepared the direct investment accounts at current cost.

HOLDINGS of foreign-owned assets in the United States increased strongly in 2000, as a result of record financial inflows that were only partly offset by negative valuation adjustments to the holdings. In contrast, holdings of U.S.-owned assets abroad increased by a relatively small amount in 2000; financial outflows were stronger than last year, but negative valuation adjustments significantly reduced the valuation of U.S. holdings. Consequently, the net international investment position of the United States became substantially more negative in 2000 after 3 years of relatively little change. The negative position reflects the amount by which the yearend value of foreign investments in the United States exceeds the yearend value of U.S. investments abroad.

With direct investment valued at the current cost of tangible assets, the negative net position increased to $1,842.7 billion at yearend 2000 from $1,099.8 billion at yearend 1999; with direct investment valued at the stock market value of owners’ equity, it increased to $2,187.4 billion at yearend 2000 from $1,525.3 billion at yearend 1999 (table A, chart 1).(1)

[GRAPH OMITTED]

Table A.–U.S. Net International Investment Position at Yearend

[Billions of dollars]

1998 1999 2000

Net position:

At current cost -1,128.7 -1,099.8 -1,842.7

At market value -1,424.0 -1,525.3 -2,187.4

U.S.-owned assets abroad:

At current cost 5,091.6 5,921.1 6,167.2

At market value 6,063.2 7,206.3 7,189.8

Foreign-owned assets in

the United States:

At current cost 6,220.3 7,020.9 8,009.9

At market value 7,487.2 8,731.7 9,377.2

With direct investment valued at current cost, U.S.-owned assets abroad increased to $6,167.2 billion at yearend 2000 from $5,921.1 billion at yearend 1999. With direct investment valued at market value, U.S.-owned assets abroad decreased to $7,189.8 billion at yearend 2000 from $7,206.3 billion at yearend 1999 (table A).

* Financial flows increased net U.S. investments abroad $581.0 billion. Net U.S. purchases of foreign stocks were large, U.S. direct investment abroad was strong, and U.S. bank and nonbank claims on foreigners increased sharply (table B).

Table B.–Changes in U.S.-Owned Assets Abroad, 2000

[Billions of dollars]

At current cost At market value

Total change 246.1 -16.5

Financial flows 581.0 581.0

Valuation adjustments -334.9 -597.5

Price changes -162.4 -364.5

Exchange rate changes -194.4 -264.9

Other valuation changes 21.9 31.9

* Negative valuation adjustments reduced the value of net U.S. investments abroad $334.9 billion with direct investment on a current-cost basis and $597.5 billion with direct investment on a market-value basis. The negative valuation adjustments on both bases reflected declines in foreign stock prices and declines in foreign-currency-denominated assets due to depreciation of most foreign currencies against the dollar (table B).

With direct investment valued at current cost, foreign-owned assets in the United States increased to $8,009.9 billion at yearend 2000 from $7,020.9 billion at yearend 1999. With direct investment valued at market value, foreign-owned assets increased to $9,377.2 billion at yearend 2000 from $8,731.7 billion at yearend 1999 (table A).

* Financial flows increased net foreign investments in the United States $1,024.2 billion. Net foreign purchases of U.S. securities other than U.S. Treasury securities were a record, foreign direct investment in the United States was a near record, and U.S. liabilities reported by banks and by nonbanks increased sharply (table C).

Table C.–Changes in Foreign-Owned Assets in the United

States, 2000

[Billions of dollars]

At current cost At market value

Total change 989.0 645.6

Financial flows 1,024.2 1,024.2

Valuation adjustments -35.2 -378.6

Price changes 26.8 -322.3

Exchange rate changes -33.0 -31.1

Other valuation changes -29.1 -25.3

* Negative valuation adjustments reduced the value of net foreign-owned assets in the United States $35.2 billion with direct investment at current cost and $378.6 billion with direct investment at market value. The substantial reduction on the market-value basis was due to the decline in U.S. stock prices (table C).

* This article presents the major changes in U.S. assets abroad and in foreign assets in the United States, including direct investment valued at both current cost and at market value, in 2000. Tables 1 and 2 at the end of this article present detailed estimates of the yearend positions.

Changes in U.S.-Owned Assets Abroad

Bank and nonbank claims

U.S. claims on foreigners reported by U.S. banks increased $176.3 billion, to $1,276.7 billion, in 2000, as a result of strong lending to banks abroad, the need to supply funds to foreign bond markets, and large increases in placements of foreign commercial paper in the United States (table D).

Table D.–U.S. Claims Reported by U.S. Banks and U.S.

Nonbanks at Yearend

[Billions of dollars]

1998 1999 2000

Total bank-reported claims 1,020.8 1,100.4 1,276.7

Banks’ own claims, payable in

dollars 735.0 793.1 911.9

On own foreign offices 484.5 529.7 630.1

On unaffiliated foreign banks 106.2 97.1 99.6

On other foreigners 144.3 166.3 182.2

Banks’ customer claims, payable in

dollars 186.9 219.1 278.4

Banks’ claims, payable in foreign

currencies 98.9 88.2 86.6

Total nonbank-reported claims 588.3 667.7 825.3

U.S. banks’ own claims on banks abroad payable in dollars increased $118.8 billion, to $911.9 billion. The increase in overseas lending by U.S. banks reflected strong demand for bank credit that resulted from significant merger and acquisition activity overseas, strong economic growth in many industrialized countries, large foreign purchases of U.S. securities, and reductions in U.S. interest rates. The increase in interbank claims was primarily on banks’ own foreign offices. Foreign-owned banks’ claims on their offices in Western Europe, particularly in the United Kingdom and Switzerland, increased throughout the year, reflecting substantial credit demands at these offices. U.S.-owned banks’ claims on their offices in Western Europe and the Caribbean increased mostly in the second half of the year when the U.S. economy and domestic credit growth slowed. Claims on other foreigners also increased, largely reflecting U.S. securities dealers’ lending to international bond funds in the Caribbean and Western Europe.

U.S. banks’ domestic customers’ claims payable in dollars increased $59.3 billion, to $278.4 billion, reflecting strengthened customer demand for foreign short-term paper. Foreign commercial paper issues in the United States increased more than three times as much as in 1999. Increases were particularly large in the third and fourth quarters, when borrowing preferences shifted sharply to short-term financing as borrowing conditions deteriorated in bond markets both in the United States and abroad.

U.S. claims on foreigners reported by U.S. nonbanking concerns increased $157.5 billion, to $825.3 billion, as U.S. nonbanking concerns significantly increased their deposits in banks in Western Europe and in Caribbean banking centers, especially in the first and fourth quarters. The sharp acceleration in U.S. deposits abroad helped to finance the heightened foreign demand for credit among industrial countries and to fund circuitous lending back to U.S. borrowers (table D).

Foreign securities

U.S. holdings of foreign securities decreased $197.9 billion, to $2,406.5 billion, in 2000, reflecting a sharp decrease in the value of foreign stocks resulting from declines in foreign stock prices and from depreciation of most currencies against the U.S. dollar. Holdings of foreign bonds were virtually unchanged.

U.S. holdings of foreign stocks decreased $197.8 billion, to $1,828.8 billion (table E). The decrease resulted from $153.7 billion in price depreciation and $143.9 billion in exchange-rate depreciation that were only partly offset by $99.7 billion in net U.S. purchases. Continued exchanges of stock associated with acquisitions of U.S. companies by European and Canadian companies accounted for most of net U.S. purchases.

Table E.–U.S. Holdings of Foreign Stocks by Major Areas

at Yearend

[Billions of dollars]

1998 1999 2000

Total holdings 1,476.2 2,026.6 1,828.8

Western Europe 960.5 1,167.8 1,117.6

Of which: United Kingdom 295.6 374.8 365.2

Finland 45.6 160.2 134.8

France 130.4 183.2 180.9

Germany 104.4 117.6 101.9

Ireland 19.5 18.2 16.1

Italy 59.1 53.5 48.1

Netherlands 115.4 141.9 136.5

Spain 37.7 35.7 28.1

Sweden 43.7 74.8 56.3

Switzerland 73.6 64.3 75.2

Canada 62.0 100.7 123.3

Japan 145.9 273.7 181.4

Latin America 54.0 89.1 73.5

Of which: Argentina 8.9 11.3 8.1

Brazil 17.4 28.9 25.0

Mexico 27.8 30.2 25.1

Other Western Hemishphere 77.8 129.0 144.2

Of which: Bermuda 37.2 45.9 42.6

Netherlands Antilles 24.8 26.7 34.4

Other countries 176.0 266.3 188.8

Of which: Australia 34.3 39.2 35.0

Hong Kong 27.0 38.7 34.9

Singapore 10.3 16.3 8.4

* U.S. holdings of Western European stocks decreased 4 percent. European stock prices declined 4 percent on average, and the euro depreciated 13 percent against the dollar between yearend 1999 and yearend 2000. Partly offsetting were $57.1 billion in net U.S. purchases, mostly in exchanges of stock associated with foreign acquisitions of U.S. companies.

* U.S. holdings of Japanese stocks decreased 34 percent. Large net sales of $17.5 billion, 20-percent price depreciation, and 9-percent exchange-rate depreciation of the yen against the U.S. dollar accounted for the decrease. The reduced demand for Japanese stocks reflected unrealized economic reforms and an uneven economic recovery.

* U.S. holdings of Canadian stocks increased 22 percent, mostly because of strong net U.S. purchases and stock price appreciation of 8 percent. Exchange-rate depreciation of 3 percent was partly offsetting.

* U.S. holdings of other foreign stocks decreased substantially. Holdings of Asian emerging market stocks decreased sharply, reflecting an average price decline of 33 percent. Holdings of Latin American stocks decreased 18 percent.

U.S. holdings of foreign bonds were virtually unchanged, at $577.7 billion (table F). Net U.S. purchases were $25.2 billion; these purchases were offset by price depreciation of $10.7 billion, as foreign bond prices fell, and exchange-rate depreciation of $14.6 billion. The stability of the U.S. bond market relative to other world bond markets encouraged a step-up in new issues, especially by European corporations to finance merger and acquisition activity and by sovereign borrowers from Latin America and emerging market countries. However, price declines and depreciation of most foreign currencies against the U.S. dollar prompted U.S. investors to sell outstanding foreign-currency-denominated bonds.

Table F.–U.S. Holdings of Foreign Bonds by Major Areas at

Yearend

[Billions of dollars]

1998 1999 2000

Total holdings 576.7 577.7 577.7

Western Europe 205.9 205.8 223.4

Of which: United Kingdom 61.6 59.0 68.2

France 14.1 12.7 14.1

Germany 44.9 43.9 50.9

Italy 15.4 12.8 11.9

Netherlands 12.6 12.4 17.3

Sweden 13.3 12.2 11.9

Canada 110.8 97.9 91.4

Japan 29.8 24.5 24.9

Latin America 101.6 108.3 120.4

Of which: Argentina 28.2 26.2 24.4

Brazil 19.6 19.6 20.4

Mexico 31.7 38.7 34.3

Other Western Hemisphere 23.8 27.5 27.3

Of which: Cayman Islands 14.8 14.0 9.8

Other countries 87.8 90.2 67.9

Of which: Australia 30.6 27.5 27.5

Korea 14.0 12.5 11.1

International organizations 17.0 23.5 22.4

U.S. direct investment abroad

U.S. direct investment abroad valued at current cost increased $117.2 billion, to $1,445.2 billion, in 2000; at market value, it decreased $145.4 billion, to $2,467.8 billion (table G). Net financial outflows–a near record $152.4 billion–included numerous large acquisitions and were encouraged by favorable growth prospects in many countries, particularly in Europe (table H). Net equity capital outflows were $49.9 billion, below last year’s level but still strong; outflows were associated with strong U.S. acquisitions abroad. Reinvested earnings increased sharply to $99.7 billion, partly as a result of growth in total overseas earnings. Inter-company debt outflows decreased sharply to $2.8 billion. At current cost, the large financial outflows more than accounted for the increase in the position. At market value, the financial outflows were more than offset by a large decrease in U.S. owners’ equity–reflecting the widespread decline in most foreign stock markets, especially in Europe where U.S. investment is large–and by depreciation in foreign-currency-denominated positions due to the decline of most foreign currencies against the U.S. dollar.

Table G.–U.S. Direct Investment Abroad at Yearend

[Billions of dollars]

1998 1999 2000

U.S. direct investment abroad:

At current cost 1,196.8 1,328.0 1,445.2

At market value 2,168.3 2,613.2 2,467.8

Table H.–U.S. Direct Investment Abroad, 2000

[Billions of dollars]

At current At market

cost value

Total position 1,445.2 2,467.8

Total change 117.2 -145.4

Financial outflows 152.4 152.4

Equity capital 49.9 49.9

Intercompany debt 2.8 2.8

Reinvested earnings 99.7 99.7

Price changes 6.1 -196.0

Exchange rate changes -22.0 -92.5

Other valuation changes -19.3 -9.3

U.S. official reserve assets and other U.S. Government assets

U.S. official reserve assets decreased $8.0 billion, to $128.4 billion, in 2000, mostly reflecting a decline in the market value of the U.S. gold stock and a decrease in the value of foreign currency assets due to strong appreciation of the U.S. dollar against the yen and the euro. For financial flows, U.S. intervention purchases of euros in the third quarter and an increase in U.S. holdings of special drawing rights were largely offset by a decline in the U.S. reserve position at the International Monetary Fund. The U.S. reserve position decreased as a result of large U.S. dollar-denominated repayments by Brazil, Mexico, and Russia that exceeded dollar borrowings.

U.S. Government assets, other than reserve assets, increased $0.9 billion, to $85.2 billion. The increase reflected net new credits extended through U.S. Government international lending programs.

Changes in Foreign-Owned Assets in the United States

Bank and nonbank liabilities

U.S. liabilities reported by U.S. banks increased $72.6 billion, to $1,139.8 billion, in 2000, representing heightened U.S. and international demand for bank credit. The strong growth in outstanding U.S. dollar liabilities was attributable to bank financing for U.S. domestic commercial and industrial loan expansion, mostly in the first half of the year, to considerable international lending, and to an upturn in foreign deposits in the United States (table I).

Table I.–U.S. Liabilities Reported by U.S. Banks and U.S.

Nonbanks at Yearend

[Billions of dollars]

1998 1999 2000

Total bank-reported liabilities 1,014.0 1,067.2 1,139.8

Banks’ own liabilities, payable in

dollars 804.7 873.9 952.0

To own foreign offices 562.9 609.2 650.5

To unaffiliated foreign banks 113.2 119.3 138.6

To other foreigners 128.6 145.4 162.9

Banks’ custody liabilities, payable in

dollars 108.2 104.8 111.7

Banks’ liabilities, payable in foreign

currencies 101.1 88.5 76.1

Total nonbank-reported liabilities 485.7 555.6 722.7

U.S. banks’ own liabilities payable in dollars increased $78.1 billion, to $952.0 billion. Most of the increase was to the interbank market. Banks in the United States financed an expansion of domestic assets in the first half of the year through substantial intercompany borrowing, and they borrowed heavily from offices in the Caribbean to meet the surge in credit demand associated with acquisitions and consolidations. In addition, foreigners accelerated their time deposit placements in U.S.-owned banks to capture relatively higher short-term yields, particularly in the second and fourth quarters. Liabilities to other foreigners increased $17.5 billion, mostly as a result of a resurgence in positions of U.S. securities dealers with private foreigners in Western Europe and the Caribbean.

U.S. liabilities to foreigners reported by U.S. nonbanking concerns increased $167.2 billion, to $722.7 billion. U.S. borrowing, particularly from financial institutions in Western Europe and the Caribbean, was large, especially in the first quarter (table I).

U.S. Treasury securities

Foreign holdings of U.S. Treasury securities decreased $21.0 billion, to $639.7 billion, in 2000. The decrease was attributable to $52.8 billion in net sales that were only partly offset by $31.8 billion in price appreciation resulting from lower bond interest rates. The popularity of U.S. Government bonds to foreign portfolio investors was curtailed by their steep interest rate decline, the relative attractiveness of higher yielding U.S. agency and high-grade corporate bonds, and concerns over diminishing supplies of Treasury securities. (Foreign private holdings and foreign official holdings are combined in table J in order to avoid disclosure of sensitive data on individual country holdings by foreign official agencies.)

Table J.–Foreign Official and Private Holdings of U.S.

Treasury Securities by Selected Countries at Yearend

[Billions of dollars]

1998 1999 2000

Total holdings 1,318.8 1,238.9 1,222.0

Japan 292.6 320.9 347.7

United Kingdom 279.2 238.8 214.6

Germany 100.2 96.1 91.6

China 48.7 51.3 49.9

Hong Kong 46.0 45.8 45.6

Middle East OPEC members 28.4 28.6 32.9

Korea, Republic of 18.4 25.3 32.2

Belgium & Luxembourg 32.8 27.9 29.7

British West Indies 39.6 28.2 25.7

Singapore 45.0 30.5 24.4

Other U.S. securities

Foreign holdings of U.S. securities, other than U.S. Treasury securities, increased $442.0 billion, to $2,964.0 billion, in 2000. Record net foreign purchases of U.S. securities were partly offset by substantial stock-price depreciation and exchange-rate depreciation on foreign-currency-denominated U.S. corporate bonds.

Foreign holdings of U.S. corporate and U.S. agency bonds increased $312.3 billion, to $1,374.3 billion (table K). Record net foreign purchases of $292.9 billion and price appreciation of $43.6 billion substantially exceeded exchange-rate depreciation of $24.2 billion. Foreign investors were attracted by the higher yields on U.S. corporate and agency bonds than on foreign bonds and on U.S. Treasury bonds, by the strength of the dollar, and by sizable new issues of U.S. agency bonds, many of which replaced purchases of U.S. Treasury bonds.

Table K.–Foreign Private Holdings of U.S. Corporate and

Agency Bonds by Major Areas at Yearend

[Billions of dollars]

1998 1999 2000

Total holdings 902.2 1,061.9 1,374.3

Western Europe 588.1 673.1 850.0

Of which: United Kingdom 470.0 536.1 684.5

France 14.6 15.1 17.4

Germany 19.7 24.7 28.2

Italy 3.2 3.5 4.8

Netherlands 16.3 17.2 18.5

Canada 23.3 25.6 37.0

Japan 108.7 120.4 162.9

Latin America 19.9 26.2 37.4

Other Western Hemisphere 105.2 145.9 193.1

Other countries 57.0 70.7 93.9

Foreign holdings of U.S. corporate stocks increased $129.6 billion, to $1,589.7 billion (table L).

Table L.–Foreign Private Holdings of U.S. Corporate Stocks

by Major Areas at Yearend

[Billions of dollars]

1998 1999 2000

Total holdings 1,110.3 1,460.1 1,589.7

Western Europe 686.3 926.5 1,064.8

Of which: United Kingdom 302.4 408.6 461.9

France 35.4 49.1 58.5

Germany 51.5 71.3 85.0

Italy 15.1 21.0 25.0

Netherlands 74.9 103.9 123.8

Canada 108.1 142.5 144.8

Japan 81.6 103.8 102.0

Latin America 21.5 27.7 30.1

Other Western Hemisphere 114.2 140.3 115.1

Other countries 98.6 119.3 132.9

Record net purchases of $192.7 billion were partly offset by $63.1 billion in price depreciation. The strength of the U.S. dollar and favorable prospects for the U.S. economy prompted record foreign investments and outweighed the negative influences of increased market volatility and declining stock prices that began after the first quarter. The Nasdaq index, which is heavily weighted with technology-related stocks, lost 39.3 percent in 2000 after gaining 85.6 percent in 1999. The Standard & Poor’s 500 index lost 10.1 percent after a rise of 19.5 percent.

U.S. currency

U.S. currency held by foreigners increased $1.1 billion, to $251.8 billion, in 2000. Supplies of U.S. currency shipped at yearend 1999 as precautions against Y2K problems were sufficient to meet demands for much of 2000.

Foreign direct investment in the United States

Foreign direct investment in the United States valued at current cost increased $275.1 billion, to $1,369.5 billion, in 2000; at market value, it decreased $68.4 billion, to $2,736.9 billion (table M). Net financial inflows were a near record $287.7 billion (table N). Net equity capital inflows slowed slightly to $216.7 billion, but remained very strong as a result of numerous acquisitions during the year, especially by Western European firms. Reinvested earnings increased slightly to $23.7 billion. Net intercompany debt inflows decreased to $47.3 billion. At current cost, net financial inflows were partly offset by small negative valuation adjustments, mainly to reconcile market values with the smaller book values of acquisitions. At market value, net financial inflows were more than offset by substantial price depreciation in foreign owners’ equity, resulting from the &dine in U.S. stock prices.

Table M.–Foreign Direct Investment in the United States at

Yearend

[Billions of dollars]

1998 1999 2000

Foreign direct investment

in the United States:

At current cost 912.2 1,094.4 1,369.5

At market value 2,179.0 2,805.2 2,736.9

Table N.–Foreign Direct Investment in the United States,

2000

[Billions of dollars]

At current cost At market value

Total position 1,369.6 2,736.9

Total change 275.1 -68.4

Financial inflows 287.7 287.7

Equity capital 216.7 216.7

Intercompany debt 47.3 47.3

Reinvested earnings 23.7 23.7

Price changes 0.1 -349.0

Exchange rate changes -1.9 0.0

Other valuation changes -10.8 -7.1

Foreign official assets

Foreign official assets increased $52.1 billion, to $922.4 billion, in 2000, reflecting $37.6 billion in capital inflows and $14.4 billion in price appreciation. Most of the capital inflows were the result of intervention purchases of U.S. dollars by a few industrial countries. Assets of OPEC members and other developing countries also increased a small amount. The price appreciation of assets was the result of a 6-percent increase in the price of U.S. Treasury bonds.

Table 1.–International Investment Position of the United

States at Yearend, 1999 and 2000

[Millions of dollars]

Changes in position

in 2000 (decrease (-))

Attributable to:

Valuation

adjustments

Position, Financial Price

Line Type of investment 1999(r) flows changes

(a) (b)

Net international

investment

position

of the

United

States:

1 With direct

investment

positions

at current

cost (line

3 less

line 24) -1,099,786 -443,266 -189,189

2 With direct

investment

positions

at market

value

(line 4

less line

25) -1,525,347 -443,266 -42,232

U.S.-owned assets

abroad:

3 With direct

investment

positions

at current

cost

(lines

5+10+15 5,921,099 580,952 -162,350

4 With direct

investment

positions

at market

value

(lines

5+10+15) 7,206,320 580,952 -364,486

5 U.S. official

reserve

assets 136,418 290 -4,134

6 Gold 75,950 … (3)-4,134

7 Special

drawing

rights 10,336 722 …

8 Reserve

position

in the

Inter-

national

Monetary

Fund 17,950 -2,308 …

9 Foreign

currencies 32,182 1,876 …

10 U.S. Government

assets,

other than

official

reserve

assets 84,227 944 …

11 U.S. credits

and other

long-term

assets(5) 81,657 920 …

12 Repayable in

dollars 81,367 929 …

13 Other(6) 290 -9 …

14 U.S. foreign

currency

holdings

and U.S.

short-term

assets 2,570 24 …

15 U.S. private

assets:

With direct

investment

at current

cost

(lines

17+19+

22+23) 5,700,454 579,718 -158,216

16 With direct

investment

at market

value

(lines

18+19+

22+23) 6,985,675 579,718 -360,352

Direct

investment

abroad:

17 At current

cost 1,327,954 152,437 6,128

18 At market

value 2,613,175 152,437 -196,008

19 Foreign

securities 2,604,383 124,935 -164,344

20 Bonds 577,745 25,200 -10,672

21 Corporate

stocks 2,026,638 99,735 -153,872

22 U.S. claims on

unaffi-

liated

foreigners

reported

by U.S.

non-

banking

concerns 667,732 163,846 …

23 U.S. claims

reported

by U.S.

banks, not

included

elsewhere 1,100,385 138,500 …

Foreign-owned

assets in

the United

States:

24 With direct

investment

at current

cost

(lines

26+33) 7,020,885 1,024,218 26,839

25 With direct

investment

at market

value

(lines

26+34) 8,731,667 1,024,218 -322,254

26 Foreign official

assets in

the United

States 870,364 37,619 14,446

27 U.S.

Government

securities 628,907 30,676 17,314

28 U.S.

Treasury

securities 578,225 -10,233 14,352

29 Other 50,682 40,909 2,962

30 Other U.S.

Government

liabili-

ties(7) 15,486 -1,987 …

31 U.S. liabi-

lities

reported

by U.S.

banks, not

included

elsewhere 138,847 5,803 …

32 Other foreign

official

assets 87,124 3,127 -2,868

Other foreign

assets:

33 With direct

investment

at current

cost

(lines

35+37+38+

41+42+43) 6,150,521 986,599 12,393

34 With direct

investment

at market

value

(lines

36+37+38+

41+42+43) 7,861,303 986,599 -336,700

Direct

investment

in the

United

States:

35 At current

cost 1,094,439 287,655 102

36 At market

value 2,805,221 287,655 -348,991

37 U.S. Treasury

securities 660,693 -52,792 31,783

38 U.S.

securities

other than

U.S.

Treasury

securities 2,522,009 485,644 -19,492

39 Corporate

and other

bonds 1,061,924 292,904 43,619

40 Corporate

stocks 1,460,085 192,740 -63,111

41 U.S.currency 250,657 1,129 …

42 U.S. liabili-

ties to

unaffi-

liated

foreigners

reported

by U.S.

nonbanking

concerns 555,566 177,010 …

43 U.S. liabili-

ties re-

ported by

U.S.

banks, not

included

elsewhere 1,067,157 87,953 …

Changes in position in 2000

(decrease (-))

Attributable to:

Valuation

adjustments

Exchange

rate Other Position,

Type of investment changes changes Total 2000(p)

(1) (2)

(c) (d) (a+b+c+d)

Net international

investment

position

of the

United

States:

With direct

investment

positions

at current

cost (line

3 less

line 24) -161,397 50,975 -742,877 -1,842,663

With direct

investment

positions

at market

value

(line 4

less line

25) -233,846 57,247 -662,097 -2,187,444

U.S.-owned assets

abroad:

With direct

investment

positions

at current

cost

(lines

5+10+15 -194,351 21,862 246,113 6,167,215

With direct

investment

positions

at market

value

(lines

5+10+16) -264,903 31,909 -16,528 7,189,792

U.S. official

reserve

assets -4,157 -17 -8,018 128,400

Gold … (4)-17 -4,151 71,799

Special

drawing

rights -519 … 203 10,539

Reserve

position

in the

Inter-

national

Monetary

Fund -818 … -3,126 14,824

Foreign

currencies -2,820 … -944 31,238

U.S. Government

assets,

other than

official

reserve

assets … … 944 85,171

U.S. credits

and other

long-term

assets(5) … … 920 82,577

Repayable in

dollars … … 929 82,296

Other(6) … … -9 281

U.S. foreign

currency

holdings

and U.S.

short-term

assets … … 24 2,594

U.S. private

assets:

With direct

investment

at current

cost

(lines

17+19+

22+23) -190,194 21,879 253,187 5,953,641

With direct

investment

at market

value

(lines

18+19+

22+23) -260,746 31,926 -9,454 6,976,221

Direct

investment

abroad:

At current

cost -21,975 -19,367 117,223 1,445,177

At market

value -92,527 -9,320 -145,418 2,467,757

Foreign

securities -158,470 … -197,879 2,406,504

Bonds -14,579 … -51 577,694

Corporate

stocks -143,891 … -197,828 1,828,810

U.S. claims on

unaffi-

liated

foreigners

reported

by U.S.

non-

banking

concerns -6,327 … 157,519 825,251

U.S. claims

reported

by U.S.

banks, not

included

elsewhere -3,422 41,246 176,324 1,276,709

Foreign-owned

assets in

the United

States:

With direct

investment

at current

cost

(lines

26+33) -32,954 -29,113 988,990 8,009,875

With direct

investment

at market

value

(lines

26+34) -31,057 -25,338 645,569 9,337,236

Foreign official

assets in

the United

States … … 52,065 922,429

U.S.

Government

securities … … 47,990 676,897

U.S.

Treasury

securities … … 4,119 582,344

Other … … 43,871 94,553

Other U.S.

Government

liabili-

ties(7) … … -1,987 13,499

U.S. liabi-

lities

reported

by U.S.

banks, not

included

elsewhere … … 5,803 144,650

Other foreign

official

assets … … 259 87,383

Other foreign

assets:

With direct

investment

at current

cost

(lines

35+37+38+

41+42+43) -32,954 -29,113 936,925 7,087,446

With direct

investment

at market

value

(lines

36+37+38+

41+42+43) -31,057 -25,338 593,504 8,454,807

Direct

investment

in the

United

States:

At current

cost -1,897 -10,794 275,066 1,369,505

At market

value … -7,019 -68,355 2,736,866

U.S. Treasury

securities … … -21,009 639,684

U.S.

securities

other than

U.S.

Treasury

securities -24,188 … 441,964 2,963,973

Corporate

and other

bonds -24,188 … 312,335 1,374,259

Corporate

stocks … … 129,629 1,589,714

U.S.currency … … 1,129 251,786

U.S. liabili-

ties to

unaffi-

liated

foreigners

reported

by U.S.

nonbanking

concerns -1,519 -8,319 167,172 722,738

U.S. liabili-

ties re-

ported by

U.S.

banks, not

included

elsewhere -5,350 -10,000 72,603 1,139,760

(p) Preliminary.

(r) Revised.

(1.) Represents gains or losses on foreign-currency-denominated

assets due to their revaluation at current exchange rates.

(2.) Includes changes in coverage, statistical discrepancies,

and other adjustments to the value of assets.

(3.) Reflects changes in the value of the official gold stock due

to fluctuations in the market price of gold.

(4.) 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.

(5.) 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.

(6.) 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.

(7.) Primarily U.S. Government liabilities associated with military

sales contracts and other transactions arranged with or through

foreign official agencies.

Table 2.–International Investment Position of the United States at

Yearend, 1976-2000

[Millions of dollars]

Line Type of investment 1976 1977 1978 1979

Net international

investment

position of

the United

States:

1 With direct

investment

positions at

current cost

(line 3 less

line 24) 164,832 171,440 206,423 316,926

2 With direct

investment

positions at

market value

(line 4 less

line 25) … … … …

U.S.-owned assets

abroad:

3 With direct

investment

at current

coat (lines

5+10+15) 456,964 512,278 621,227 786,701

4 With direct

investment

at market

value (lines

5+10+15) … … … …

5 U.S. official

reserve

assets 44,094 53,376 69,450 143,260

6 Gold(1) 36,944 45,781 62,471 135,476

7 Special drawing

rights 2,395 2,629 1,558 2,724

8 Reserve position

in the

International

Monetary Fund 4,434 4,946 1,047 1,253

9 Foreign

currencies 321 20 4,374 3,807

10 U.S. Government

assets, other

than official

reserve

assets 44,978 48,567 53,187 58,851

11 U.S. credits and

other long-

term

assets(2) 44,124 47,749 52,252 57,909

12 Repayable in

dollars 41,309 45,154 49,817 54,616

13 Other(3) 2,815 2,595 2,435 3,293

14 U.S. foreign

currency

holdings and

U.S. short-

term assets 854 818 935 942

U.S. private

assets:

15 With direct

investment

at current

cost (lines

17+19+22+23) 367,892 410,335 498,590 584,590

16 With direct

investment

at market

value (lines

18+19+22+23) … … … …

Direct investment

abroad:

17 At current

cost(4) 222,283 246,078 285,005 336,301

18 At market

value(4) … … … …

19 Foreign

securities(5) 44,157 49,439 53,384 56,769

20 Bonds(5) 34,704 39,329 42,148 41,966

21 Corporate

stocks(5) 9,453 10,110 11,236 14,803

22 U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 20,317 22,256 29,385 34,491

23 U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 81,135 92,562 130,816 157,029

Foreign-owned assets

in the United

States:

24 With direct

investment

at current

cost (lines

26+33) 292,132 340,838 414,804 469,775

25 With direct

Investment

at market

value (lines

26+34) … … … …

26 Foreign official

assets in

the United

States 104,445 140,867 173,057 159,852

27 U.S. Government

securities 72,572 105,386 128,511 106,640

28 U.S. Treasury

securities(8) 70,555 101,092 123,991 101,748

29 Others(8) 2,017 4,294 4,520 4,892

30 Other U.S.

Government

liabili-

ties(9) 8,860 10,260 12,749 12,749

31 U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 17,231 18,004 23,327 30,540

32 Other foreign

official

assets(8) 5,782 7,217 8,470 9,923

Other foreign

assets in

the United

States:

33 With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 187,687 199,971 241,747 309,923

34 With direct

investment

at market

value (lines

36+37+38+

41+42+43) … … … …

Direct investment

in the United

States:

35 At current

cost(10) 47,528 55,413 68,976 88,579

36 At market

value(10) … … … …

37 U.S. Treasury

securities(8) 7,028 7,562 8,910 14,210

38 U.S. securities

other than

U.S. Treasury

securities(8) 54,913 51,235 53,554 58,587

39 Corporate and

other

bonds(8) 11,964 11,456 11,457 10,269

40 Corporate

stocks(8) 42,949 38,779 42,097 48,318

41 U.S. currency 11,792 13,656 16,569 19,552

42 U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 12,961 11,921 16,019 18,669

43 U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 53,465 60,184 77,719 110,326

Type of investment 1980 1981 1982

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) 360,838 339,767 328,954

With direct

investment

positions at

market value

(line 4 less

line 25) … … 235,947

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 929,806 1,001,667 1,108,436

With direct

investment

at market

value (lines

5+10+15) … … 961,015

U.S. official

reserve

assets 171,412 124,568 143,445

Gold(1) 155,816 105,644 120,635

Special drawing

rights 2,610 4,096 5,250

Reserve position

in the

International

Monetary Fund 2,852 5,054 7,348

Foreign

currencies 10,134 9,774 10,212

U.S. Government

assets, other

than official

reserve

assets 65,573 70,893 76,903

U.S. credits and

other long-

term

assets(2) 63,731 69,320 75,105

Repayable in

dollars 60,731 66,591 72,635

Other(3) 3,000 2,729 2,470

U.S. foreign

currency

holdings and

U.S. short-

term assets 1,842 1,573 1,798

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 692,821 806,206 888,088

With direct

investment

at market

value (lines

18+19+22+23) … … 740,667

Direct investment

abroad:

At current

cost(4) 388,072 407,804 374,059

At market

value(4) … … 226,638

Foreign

securities(5) 62,454 62,142 74,046

Bonds(5) 43,524 45,675 56,604

Corporate

stocks(5) 18,930 16,467 17,442

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 38,429 42,752 35,405

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 203,866 293,508 404,578

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 568,968 661,900 779,482

With direct

Investment

at market

value (lines

26+34) … … 725,068

Foreign official

assets in

the United

States 176,062 180,425 189,109

U.S. Government

securities 118,189 125,130 132,587

U.S. Treasury

securities(8) 111,336 117,004 124,929

Others(8) 6,853 8,126 7,658

Other U.S.

Government

liabili-

ties(9) 13,367 13,029 13,639

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 30,381 26,737 24,989

Other foreign

official

assets(8) 14,125 15,529 17,894

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 392,906 481,475 590,373

With direct

investment

at market

value (lines

38+37+38+

41+42+43) … … 535,959

Direct investment

in the United

States:

At current

cost(10) 127,105 164,623 184,842

At market

value(10) … … 130,428

U.S. Treasury

securities(8) 16,113 18,505 25,758

U.S. securities

other than

U.S. Treasury

securities(8) 74,114 75,085 92,988

Corporate and

other

bonds(8) 9,545 10,694 16,709

Corporate

stocks(8) 64,569 64,391 76,279

U.S. currency 24,079 27,295 31,265

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 30,426 30,606 27,532

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 121,069 165,361 227,988

Type of investment 1983 1984 1985

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) 298,304 160,695 54,343

With direct

investment

positions at

market value

(line 4 less

line 25) 257,393 134,088 96,886

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 1,210,974 1,204,900 1,287,396

With direct

investment

at market

value (lines

5+10+16) 1,129,673 1,127,132 1,302,712

U.S. official

reserve

assets 123,110 105,040 117,930

Gold(1) 100,484 81,202 85,384

Special drawing

rights 5,025 5,641 7,293

Reserve position

in the

International

Monetary Fund 11,312 11,541 11,947

Foreign

currencies 6,289 6,656 12,856

U.S. Government

assets, other

than official

reserve

assets 81,664 86,945 89,792

U.S. credits and

other long-

term

assets(2) 79,852 84,857 87,854

Repayable in

dollars 77,618 82,819 85,978

Other(3) 2,234 2,038 1,876

U.S. foreign

currency

holdings and

U.S. short-

term assets 1,812 2,088 1,938

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 1,006,200 1,012,915 1,079,674

With direct

investment

at market

value (lines

18+19+22+23) 924,899 935,147 1,094,990

Direct investment

abroad:

At current

cost(4) 355,643 348,342 371,036

At market

value(4) 274,342 270,574 386,352

Foreign

securities(5) 84,723 88,804 119,403

Bonds(5) 58,569 62,810 75,020

Corporate

stocks(5) 26,154 25,994 44,383

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 131,329 130,138 141,872

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 434,505 445,631 447,363

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 912,670 1,044,205 1,233,053

With direct

Investment

at market

value (lines

26+34) 872,280 993,044 1,205,826

Foreign official

assets in

the United

States 194,468 199,678 202,482

U.S. Government

securities 136,987 144,665 145,063

U.S. Treasury

securities(8) 129,716 138,168 138,438

Others(8) 7,271 6,497 6,625

Other U.S.

Government

liabili-

ties(9) 14,231 14,959 15,803

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 25,534 26,090 26,734

Other foreign

official

assets(8) 17,716 13,964 14,882

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 718,202 844,527 1,030,571

With direct

investment

at market

value (lines

38+37+38+

41+42+43) 677,812 793,366 1,003,344

Direct investment

in the United

States:

At current

cost(10) 193,708 223,538 247,223

At market

value(10) 153,318 172,377 219,996

U.S. Treasury

securities(8) 33,846 62,121 87,954

U.S. securities

other than

U.S. Treasury

securities(8) 113,811 128,477 207,868

Corporate and

other

bonds(8) 17,454 32,421 82,290

Corporate

stocks(8) 96,357 96,056 125,578

U.S. currency 36,776 40,797 46,036

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 61,731 77,415 86,993

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 278,330 312,179 354,497

Type of investment 1986 1987 1988

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) -36,209 -80,007 -178,470

With direct

investment

positions at

market value

(line 4 less

line 25) 100,782 50,529 10,466

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 1,469,396 1,646,527 1,829,665

With direct

investment

at market

value (lines

5+10+16) 1,594,652 1,758,711 2,008,365

U.S. official

reserve

assets 139,875 162,370 144,179

Gold(1) 102,428 127,648 107,434

Special drawing

rights 8,395 10,283 9,637

Reserve position

in the

International

Monetary Fund 11,730 11,349 9,745

Foreign

currencies 17,322 13,090 17,363

U.S. Government

assets, other

than official

reserve

assets 91,850 90,681 87,892

U.S. credits and

other long-

term

assets(2) 90,923 89,900 87,163

Repayable in

dollars 89,271 88,344 85,768

Other(3) 1,652 1,556 1,395

U.S. foreign

currency

holdings and

U.S. short-

term assets 927 781 729

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 1,237,671 1,393,476 1,597,594

With direct

investment

at market

value (lines

18+19+22+23) 1,362,927 1,505,660 1,776,294

Direct investment

abroad:

At current

cost(4) 404,818 478,062 513,761

At market

value(4) 530,074 590,246 692,461

Foreign

securities(5) 158,123 188,589 232,849

Bonds(5) 85,724 93,889 104,187

Corporate

stocks(5) 72,399 94,700 128,662

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 167,392 177,368 197,757

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 507,338 549,457 653,227

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 1,505,605 1,726,534 2,008,135

With direct

Investment

at market

value (lines

26+34) 1,493,870 1,708,182 1,997,899

Foreign official

assets in

the United

States 241,226 283,058 322,036

U.S. Government

securities 178,916 220,548 260,934

U.S. Treasury

securities(8) 173,310 213,713 252,962

Others(8) 5,606 6,835 7,972

Other U.S.

Government

liabili-

ties(9) 17,993 15,667 15,200

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 27,920 31,838 31,520

Other foreign

official

assets(8) 16,397 15,005 14,382

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 1,264,379 1,443,476 1,686,099

With direct

investment

at market

value (lines

38+37+38+

41+42+43) 1,252,644 1,425,124 1,675,863

Direct investment

in the United

States:

At current

cost(10) 284,701 334,552 401,766

At market

value(10) 272,966 316,200 391,530

U.S. Treasury

securities(8) 96,078 82,588 100,877

U.S. securities

other than

U.S. Treasury

securities(8) 309,803 341,732 392,292

Corporate and

other

bonds(8) 140,863 166,089 191,314

Corporate

stocks(8) 168,940 175,643 200,978

U.S. currency 50,122 55,584 61,261

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 90,703 110,187 144,548

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 432,972 518,833 585,355

Type of investment 1989 1990 1991

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) -259,506 -245,347 -309,259

With direct

investment

positions at

market value

(line 4 less

line 25) -46,987 -164,495 -260,819

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 2,070,868 2,178,978 2,286,456

With direct

investment

at market

value (lines

5+10+15) 2,350,235 2,294,085 2,470,629

U.S. official

reserve

assets 168,714 174,664 159,223

Gold(1) 105,164 102,406 92,561

Special drawing

rights 9,951 10,989 11,240

Reserve position

in the

International

Monetary Fund 9,048 9,076 9,488

Foreign

currencies 44,551 52,193 45,934

U.S. Government

assets, other

than official

reserve

assets 86,643 84,344 81,422

U.S. credits and

other long-

term

assets(2) 86,057 83,716 79,776

Repayable in

dollars 84,734 82,602 78,814

Other(3) 1,323 1,114 962

U.S. foreign

currency

holdings and

U.S. short-

term assets 586 628 1,646

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 1,815,511 1,919,970 2,045,811

With direct

investment

at market

value (lines

18+19+22+23) 2,094,878 2,035,077 2,229,984

Direct investment

abroad:

At current

cost(4) 553,093 616,655 643,364

At market

value(4) 832,460 731,762 827,537

Foreign

securities(5) 314,294 342,313 455,750

Bonds(5) 116,949 144,717 176,774

Corporate

stocks(5) 197,345 197,596 278,976

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 234,307 265,315 256,295

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 713,817 695,687 690,402

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 2,330,374 2,424,325 2,595,715

With direct

Investment

at market

value (lines

26+34) 2,397,222 2,458,580 2,731,448

Foreign official

assets in

the United

States 341,746 373,293 398,538

U.S. Government

securities 263,612 291,228 311,199

U.S. Treasury

securities(8) 257,201 285,911 305,994

Others(8) 6,411 5,317 5,205

Other U.S.

Government

liabili-

ties(9) 15,374 17,243 18,610

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 36,495 39,880 38,396

Other foreign

official

assets(8) 26,265 24,942 30,333

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 1,988,628 2,051,032 2,197,177

With direct

investment

at market

value (lines

38+37+38+

41+42+43) 2,055,476 2,085,287 2,332,910

Direct investment

in the United

States:

At current

cost(10) 467,886 505,346 533,404

At market

value(10) 534,734 539,601 669,137

U.S. Treasury

securities(8) 166,541 152,452 170,295

U.S. securities

other than

U.S. Treasury

securities(8) 482,864 460,644 546,008

Corporate and

other

bonds(8) 231,673 238,903 274,136

Corporate

stocks(8) 251,191 221,741 271,872

U.S. currency 67,118 85,933 101,317

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 167,093 213,406 208,908

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 637,126 633,251 637,245

Type of investment 1992 1993 1994

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) -431,198 -306,956 -311,872

With direct

investment

positions at

market value

(line 4 less

line 25) -452,305 -178,020 -170,505

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 2,331,696 2,753,648 2,988,633

With direct

investment

at market

value (lines

5+10+16) 2,466,496 3,057,669 3,279,871

U.S. official

reserve

assets 147,435 164,945 163,394

Gold(1) 87,168 102,556 100,110

Special drawing

rights 8,503 9,039 10,039

Reserve position

in the

International

Monetary Fund 11,759 11,818 12,030

Foreign

currencies 40,005 41,532 41,215

U.S. Government

assets, other

than official

reserve

assets 83,022 83,382 83,908

U.S. credits and

other long-

term

assets(2) 81,352 81,435 81,884

Repayable in

dollars 80,498 80,660 81,389

Other(3) 854 775 495

U.S. foreign

currency

holdings and

U.S. short-

term assets 1,670 1,947 2,024

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 2,101,239 2,505,321 2,751,331

With direct

investment

at market

value (lines

18+19+22+23) 2,236,039 2,809,342 3,032,569

Direct investment

abroad:

At current

cost(4) 663,830 723,526 786,565

At market

value(4) 798,630 1,027,547 1,067,803

Foreign

securities(5) 515,083 853,528 948,668

Bonds(5) 200,817 309,666 321,208

Corporate

stocks(5) 314,266 543,862 627,460

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 254,303 242,022 322,980

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 668,023 686,245 693,118

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 2,762,894 3,060,604 3,310,505

With direct

Investment

at market

value (lines

26+34) 2,918,801 3,235,689 3,450,376

Foreign official

assets in

the United

States 437,263 509,422 535,217

U.S. Government

securities 329,317 381,687 407,152

U.S. Treasury

securities(8) 322,600 373,050 396,887

Others(8) 6,717 8,637 10,265

Other U.S.

Government

liabili-

ties(9) 20,801 22,113 23,678

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 54,967 69,721 73,386

Other foreign

official

assets(8) 32,178 35,901 31,001

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 2,325,631 2,551,182 2,775,288

With direct

investment

at market

value (lines

38+37+38+

41+42+43) 2,481,538 2,726,267 2,915,159

Direct investment

in the United

States:

At current

cost(10) 540,270 593,313 617,982

At market

value(10) 696,177 768,398 757,853

U.S. Treasury

securities(8) 197,739 221,501 235,684

U.S. securities

other than

U.S. Treasury

securities(8) 599,447 696,449 739,695

Corporate and

other

bonds(8) 299,287 355,822 368,077

Corporate

stocks(8) 300,160 340,627 371,618

U.S. currency 114,804 133,734 157,185

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 220,666 229,038 239,817

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 2,705 677,147 784,925

Type of investment 1995 1996(r) 1997(r)

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) -514,637 -595,168 -972,605

With direct

investment

positions at

market value

(line 4 less

line 25) -418,648 -542,234 -1,076,134

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 3,451,983 4,012,746 4,567,279

With direct

investment

at market

value (lines

5+10+16) 3,873,632 4,549,179 5,278,032

U.S. official

reserve

assets 176,061 160,739 134,836

Gold(1) 101,279 96,698 75,929

Special drawing

rights 11,037 10,312 10,027

Reserve position

in the

International

Monetary Fund 14,649 15,435 18,071

Foreign

currencies 49,096 38,294 30,809

U.S. Government

assets, other

than official

reserve

assets 85,064 86,123 86,198

U.S. credits and

other long-

term

assets(2) 82,802 83,999 84,130

Repayable in

dollars 82,358 83,606 83,780

Other(3) 444 393 350

U.S. foreign

currency

holdings and

U.S. short-

term assets 2,262 2,124 2,068

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 3,190,858 3,765,884 4,346,245

With direct

investment

at market

value (lines

18+19+22+23) 3,612,507 4,302,317 5,056,998

Direct investment

abroad:

At current

cost(4) 885,506 989,810 1,067,436

At market

value(4) 1,307,155 1,526,243 1,778,189

Foreign

securities(5) 1,169,636 1,467,985 1,751,183

Bonds(5) 392,827 465,057 543,396

Corporate

stocks(5) 776,809 1,002,928 1,207,787

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 367,567 450,578 545,524

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 768,149 857,511 982,102

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 3,966,620 4,607,914 5,539,884

With direct

Investment

at market

value (lines

26+34) 4,292,280 5,091,413 6,354,166

Foreign official

assets in

the United

States 671,710 798,368 835,962

U.S. Government

securities 497,776 610,469 614,530

U.S. Treasury

securities(8) 482,773 590,704 589,792

Others(8) 15,003 19,765 24,738

Other U.S.

Government

liabili-

ties(9) 23,573 22,592 21,712

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 107,394 113,098 135,384

Other foreign

official

assets(8) 42,967 52,209 64,336

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 3,294,910 3,809,546 4,703,922

With direct

investment

at market

value (lines

38+37+38+

41+42+43) 3,620,570 4,293,045 5,518,204

Direct investment

in the United

States:

At current

cost(10) 680,066 745,619 823,126

At market

value(10) 1,005,726 1,229,118 1,637,408

U.S. Treasury

securities(8) 358,537 502,562 662,228

U.S. securities

other than

U.S. Treasury

securities(8) 971,356 1,199,461 1,578,694

Corporate and

other

bonds(8) 481,214 588,044 715,196

Corporate

stocks(8) 490,142 611,417 863,498

U.S. currency 169,484 186,846 211,628

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 300,424 346,810 459,407

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 815,043 828,248 968,839

Type of investment 1998(r) 1999(r) 2000(p)

Net international

investment

position of

the United

States:

With direct

investment

positions at

current coat

(line 3 less

line 24) -1,128,699 -1,099,786 -1,842,663

With direct

investment

positions at

market value

(line 4 less

line 25) -1,423,988 -1,525,347 -2,187,444

U.S.-owned assets

abroad:

With direct

investment

at current

coat (lines

5+10+15) 5,091,616 5,921,099 6,167,212

With direct

investment

at market

value (lines

5+10+16) 6,063,175 7,206,320 7,189,792

U.S. official

reserve

assets 146,006 136,418 128,400

Gold(1) 75,291 75,950 71,799

Special drawing

rights 10,603 10,336 10,539

Reserve position

in the

International

Monetary Fund 24,111 17,950 14,824

Foreign

currencies 36,001 32,182 31,238

U.S. Government

assets, other

than official

reserve

assets 86,768 84,227 85,171

U.S. credits and

other long-

term

assets(2) 84,850 81,657 82,577

Repayable in

dollars 84,528 81,367 82,296

Other(3) 322 290 281

U.S. foreign

currency

holdings and

U.S. short-

term assets 1,918 2,570 2,594

U.S. private

assets:

With direct

investment

at current

cost (lines

17+19+22+23) 4,858,842 5,700,454 5,953,641

With direct

investment

at market

value (lines

18+19+22+23) 5,830,401 6,985,675 6,976,221

Direct investment

abroad:

At current

cost(4) 1,196,765 1,327,954 1,445,177

At market

value(4) 2,168,324 2,613,175 2,467,757

Foreign

securities(5) 2,052,929 2,604,383 2,406,504

Bonds(5) 576,745 577,745 577,694

Corporate

stocks(5) 1,476,184 2,026,638 1,828,810

U.S. claims on

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(6) 588,322 667,732 825,251

U.S. claims

reported by

U.S. banks,

not included

elsewhere(7) 1,020,826 1,100,385 1,276,709

Foreign-owned assets

in the United

States:

With direct

investment

at current

cost (lines

26+33) 6,220,315 7,020,885 8,009,875

With direct

Investment

at market

value (lines

26+34) 7,487,163 8,731,667 9,377,236

Foreign official

assets in

the United

States 838,041 870,364 922,429

U.S. Government

securities 620,285 628,907 676,897

U.S. Treasury

securities(8) 589,023 578,225 582,344

Others(8) 31,262 50,682 94,553

Other U.S.

Government

liabili-

ties(9) 18,340 15,486 13,499

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 125,883 138,847 144,650

Other foreign

official

assets(8) 73,533 87,124 87,383

Other foreign

assets in

the United

States:

With direct

investment

at current

cost (lines

35+37+38+

41+42+43) 5,382,274 6,150,521 7,087,446

With direct

investment

at market

value (lines

38+37+38+

41+42+43) 6,649,122 7,861,303 8,454,807

Direct investment

in the United

States:

At current

cost(10) 912,187 1,094,439 1,369,505

At market

value(10) 2,179,035 2,805,221 2,736,866

U.S. Treasury

securities(8) 729,738 660,693 639,684

U.S. securities

other than

U.S. Treasury

securities(8) 2,012,429 2,522,009 2,963,973

Corporate and

other

bonds(8) 902,153 1,061,924 1,374,259

Corporate

stocks(8) 1,110,276 1,460,085 1,589,714

U.S. currency 228,250 250,657 251,786

U.S. liabilities

to

unaffiliated

foreigners

reported by

U.S. non-

banking

concerns(11) 485,675 555,566 722,738

U.S. liabilities

reported by

U.S. banks,

not included

elsewhere 1,013,995 67,157 1,139,760

(p) Preliminary.

(r) Revised.

(1.) U.S. official gold stock is valued at market price.

(2.) 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.

(3.) 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.

(4.) A break in series in 1994 reflects the reclassification of

intercompany debt positions between parent companies and affiliates

that are not depository institutions and that are primarily engaged in

financial intermediation from the direct investment accounts to the

nonbank investment accounts. Estimates for 1976 forward are linked to

the 1977, 1982, 1989, and 1994 benchmark surveys of U.S. direct

investment abroad.

(5.) Estimates include results of the 1994 and 1997 Benchmark Surveys

of U.S. Ownership of Foreign Long-term Securities conducted by the U.S.

Department of the Treasury.

(6.) A break in series in 1983 reflects the introduction of data from

the United Kingdom and from the Bank for international Settlements

(BIS) for several European countries, Caribbean banking centers, and

Asian banking centers. Additional coverage from BIS data was

introduced in 1986, 1989, 1993, and 1994. In 1994, intercompany debt

positions between parent companies and affiliates that are not

depository institutions and that are primarily engaged on financial

intermediation are reclassified from the direct investment accounts to

the nonbank investment accounts.

(7.) A break in series in 1988 reflects the introduction of data on

holdings of foreign commercial paper.

(8.) Estimates include results of 1978, 1984, 1989, and 1994 Benchmark

Surveys of Foreign Portpolio Investment in the United States conducted

by the U.S. Department of the Treasury.

(9.) Primarily U.S. Government liabilities associated with military

sales contracts and other transactions arranged with or through foreign

official agencies.

(10.) Estimates for 1976 forward are linked to the 1980, 1987, 1992,

and 1997 benchmark surveys of foreign direct investment in the United

States.

(11.) A break in series in 1983 reflects the introduction of data from

the United Kingdom. A break in series in 1994 reflects the

reclassification of intercompany debt positions between parent

companies and affiliates that are not depository instiutions and that

are primarily engaged in financial intermediation from the direct

investment accounts to the nonbank investment accounts. A break in

series in 1996 reflects the introduction of data from the Bank for

International Settlements (BIS) for several European countries.

(1.) The current-cost method values the U.S. and foreign parents’ share of their affiliates’ investment in plant and equipment using the current cost of capital equipment, in land using general price indexes, and in inventories using estimates of their replacement cost. The market-value method values the owners’ equity share of direct investment using indexes of stock market prices. For additional information about the different measures of direct investment, 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.

Improvements in the Estimates

As is customary each July, the estimates of the U.S. international investment position incorporate newly available source data and methodological improvements that relate to the changes incorporated in the annual revision of the U.S. international transactions accounts. As a result, the negative net international investment position with direct investment at current cost for yearend 1999 has been revised from $1,082.5 billion to $1,099.8 billion, and the net position with direct investment at market value has been revised from $1,473.7 billion to $1,525.3 billion. The major sources of these revisions are the following.

* The estimates of the foreign direct investment position in the United States on both the current-cost basis and the market-value basis for 1997 forward have been revised to incorporate data collected in BEA’s 1997 benchmark survey of foreign direct investment in the United States and revised quarterly survey results for 1998-2000.

* Foreign holdings of U.S. securities other than U.S. Treasury securities are revised for 1999-2000 as a result of a more complete accounting for large U.S. acquisitions of foreign companies, especially those acquisitions financed by exchanges of stocks.

* U.S. nonbank liabilities are revised for 1996-2000 as a result of the substitution of Bank for International Settlements data on nonbank liabilities to foreign banks for U.S.-source data.

For additional information, see “U.S. International Transactions, Revised Estimates for 1989-2000” in this issue.

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