FOR WIRE TRANSMISSION: 8:30 A.M. EDT, TUESDAY, June 25, 2013 Christopher A. Gohrband: (202) 606-9564 BEA 13-29 Elena L. Nguyen: (202) 606-9555 Kevin Barefoot: (202) 606-9994 (For inquiries regarding direct investment) U.S. Net International Investment Position: End of First Quarter 2013, Year 2012, and Annual Revisions _________________________________________________________________________________________ Quarterly and Annual Statistics In this release, BEA presents the U.S. international investment position statistics for the first quarter of 2013 along with historical revisions and detailed annual statistics for 2012, including changes in positions resulting from annual financial flows and valuation changes such as price, exchange-rate, and other changes. Quarterly positions are revised for the first quarter of 2009 to the fourth quarter of 2012 and detailed annual statistics are revised for 2009-2012. Quarterly position statistics are available for the fourth quarter of 2005 to the first quarter of 2013. They are presented as part of BEA's effort to provide more frequent and timely statistics on cross-border linkages to help users better assess U.S. vulnerability to external financial shocks in the aftermath of the 2008 financial crisis. Quarterly statistics are made available every March, June, September, and December via BEA news releases. _________________________________________________________________________________________ First Quarter of 2013 The U.S. net international investment position at the end of the first quarter of 2013 was -$4,277.1 billion (preliminary) as the value of foreign investments in the United States exceeded the value of U.S. investments abroad (table 1). At the end of the fourth quarter of 2012, the U.S. net international investment position was -$3,863.9 billion (revised). The -$413.2 billion change in the net position reflected a $394.2 billion increase in the value of foreign-owned assets in the United States and a $19.0 billion decrease in the value of U.S.-owned assets abroad. U.S.-owned assets abroad were $21,618.6 billion at the end of the first quarter compared with $21,637.6 billion at the end of the fourth quarter. The $19.0 billion decrease reflected a decrease of $373.9 billion in the value of financial derivatives that was mostly offset by an increase of $354.8 billion in the value of U.S.-owned assets abroad excluding financial derivatives. U.S.-owned assets abroad excluding financial derivatives were $18,372.7 billion at the end of the first quarter compared with $18,017.9 billion at the end of the fourth quarter. The $354.8 billion increase reflected $218.8 billion in financial outflows and $136.1 billion in valuation changes./1/ Foreign-owned assets in the United States were $25,895.7 billion at the end of the first quarter compared with $25,501.5 billion at the end of the fourth quarter. The $394.2 billion increase reflected an increase of $749.3 billion in the value of foreign-owned assets in the United States excluding financial derivatives that was partly offset by a decrease of $355.1 billion in the value of financial derivatives. Foreign-owned assets in the United States excluding financial derivatives were $22,688.8 billion at the end of the first quarter compared with $21,939.5 billion at the end of the fourth quarter. The $749.3 billion increase reflected $295.5 billion in financial inflows and $453.8 billion in valuation changes. Year 2012 The U.S. net international investment position was -$3,863.9 billion (revised) at the end of 2012 compared with -$3,730.6 billion (revised) at the end of 2011. The -$133.3 billion change in the net position from the end of 2011 to the end of 2012 reflected a $134.8 billion increase in the value of foreign-owned assets in the United States that was slightly offset by a $1.5 billion increase in the value of U.S.-owned assets abroad (table 2). Highlights for 2012: * Foreign acquisitions of U.S. assets exceeded U.S. acquisitions of foreign assets by $439.4 billion. Foreign acquisitions of U.S. assets were concentrated in U.S. securities, including $433.2 billion in acquisitions of U.S. Treasury securities by foreign official agencies and $156.4 billion in acquisitions by all other foreigners. * Foreign acquisitions of U.S. assets and U.S. acquisitions of foreign assets were reduced by declines in both U.S. claims on and liabilities to foreigners reported by U.S. banks and securities brokers. * The appreciation of foreign stock prices raised the value of U.S. holdings of foreign stocks abroad. Similarly, the appreciation of U.S. stock prices raised the value of foreign holdings of U.S stocks, but by a lower amount. * The mixed performance of the U.S. dollar against major foreign currencies resulted in a $5.1 billion change in the U.S. net international investment position from exchange- rate changes. * The -$188.6 billion in other changes mostly reflected the incorporation of newly available and revised source data. * The U.S. net international investment position was equal to 2.3% of the value of all U.S. financial assets at the end of 2012, down from the peak of 2.4% at the end of 2011./2/ Financial flows Net financial flows of -$439.4 billion in 2012 resulted from U.S. acquisitions of financial assets abroad, excluding financial derivatives, of $97.5 billion, less foreign acquisitions of financial assets in the United States, excluding financial derivatives, of $543.9 billion, plus net financial outflows from financial derivatives of $7.1 billion. U.S. acquisitions of financial assets abroad, excluding financial derivatives, were $97.5 billion, down from $452.3 billion in 2011. In 2012, U.S. purchases of foreign securities exceeded sales, and U.S. official reserve assets, direct investment abroad, and claims of U.S. nonbanks on foreign residents increased. These financial outflows were partly offset by decreases in U.S. government assets other than official reserve assets and relatively large decreases ($380.5 billion) in claims of U.S. banks and securities brokers on foreign residents. Foreign acquisitions of financial assets in the United States, excluding financial derivatives, were $543.9 billion, down from $969.0 billion in 2011. In 2012, foreign private purchases of U.S. securities including U.S. Treasury securities exceeded sales. Foreign official assets, direct investment in the United States, and holdings of U.S. currency increased. These financial inflows were partly offset by relatively large decreases ($387.4 billion) in liabilities of U.S. banks and securities brokers and decreases in liabilities of U.S nonbanks to foreign residents. Valuation adjustments Valuation adjustments for 2012 included $489.6 billion in price changes, $5.1 billion in exchange-rate changes, and -$188.6 billion in other changes. Price changes led to a $489.6 billion change in the U.S. net international investment position, mostly reflecting price increases of foreign stocks and bonds that exceeded price increases of U.S. stocks and corporate bonds. Price increases of U.S. stocks and corporate bonds were partly offset by price decreases of U.S. Treasury securities and agency securities, such as debt issued by government sponsored enterprises like Fannie Mae and Freddie Mac. Exchange-rate changes led to a $5.1 billion change in the U.S. net international investment position as exchange-rate changes raised the dollar value of U.S.-owned assets abroad more than they raised the dollar value of foreign-owned assets in the United States denominated in foreign currencies. The small exchange-rate changes reflected the mixed performance of the U.S. dollar against major foreign currencies from yearend 2011 to yearend 2012. Other changes led to a -$188.6 billion change in the U.S. net international investment position. These changes reflected the incorporation of newly available source data on aggregate holdings of long-term securities by U.S. and foreign residents from the Treasury International Capital reporting system (TIC), more complete TIC reporting of the nonbanking and banking data, capital gains and losses from the sale of direct investment assets, and other adjustments to source data. (See the Annual Revisions section for more information on the TIC source data.) Investment positions at the end of 2012 U.S.-owned assets abroad were $21,637.6 billion at the end of 2012 compared with $21,636.2 billion at the end of 2011. The $1.5 billion increase reflected a $1,098.3 billion increase in the value of U.S.-owned assets abroad excluding financial derivatives that was nearly offset by a $1,096.8 billion decrease in the value of financial derivatives. Financial derivatives held as assets were $3,619.8 billion at the end of 2012 compared with $4,716.6 billion at the end of 2011. The $1,096.8 billion decrease was mainly due to decreases in U.S. claims in single-currency interest rate swaps. U.S. official reserve assets were $572.4 billion at the end of 2012 compared with $537.0 billion at the end of 2011. The $35.3 billion increase reflected price appreciation of U.S. government gold and the increased U.S. reserve position in the International Monetary Fund. These increases were partly offset by a small decrease in the value of government foreign currency holdings resulting mostly from exchange-rate changes. U.S. government assets other than official reserve assets were $93.6 billion at the end of 2012 compared with $178.9 billion at the end of 2011. The $85.3 billion decrease was mainly a result of decreases in U.S. foreign currency holdings due to central bank liquidity swaps between the U.S. Federal Reserve System and foreign central banks. The stock of U.S. direct investment abroad at current cost was $5,077.8 billion at the end of 2012 compared with $4,663.1 billion at the end of 2011. The $414.6 billion increase reflected financial outflows of $388.3 billion that were mostly accounted for by reinvested earnings. U.S. holdings of foreign securities were $7,531.2 billion at the end of 2012 compared with $6,441.4 billion at the end of 2011. The $1,089.9 billion increase was mostly attributable to price increases of foreign stocks. Claims on foreigners reported by U.S. nonbanks were $844.8 billion at the end of 2012 compared with $793.0 billion at the end of 2011. Claims on foreigners reported by U.S. banks and securities brokers were $3,898.2 billion at the end of 2012 compared with $4,306.2 billion at the end of 2011. Foreign-owned assets in the United States were $25,501.5 billion at the end of 2012 compared with $25,366.7 billion at the end of 2011. The $134.8 billion increase reflected a $1,203.3 billion increase in the value of foreign-owned assets in the United States excluding financial derivatives that was mostly offset by a $1,068.6 billion decrease in the value of financial derivatives. Financial derivatives held as liabilities were $3,562.0 billion at the end of 2012 compared with $4,630.5 billion at the end of 2011. The $1,068.6 billion decrease was mainly due to decreases in U.S. liabilities in single-currency interest rate swaps. Foreign official assets in the United States were $5,692.4 billion at the end of 2012 compared with $5,256.4 billion at the end of 2011. The $436.1 billion increase was mostly a result of net purchases of U.S. Treasury securities along with corporate bonds and stocks that were partly offset by net sales of agency bonds. The stock of foreign direct investment in the United States at current cost was $3,057.3 billion at the end of 2012 compared with $2,879.5 billion at the end of 2011. The $177.8 billion increase was mainly due to financial inflows that were mostly accounted for by unusually large reinvested earnings. Foreign private holdings of U.S. Treasury securities were $1,541.6 billion at the end of 2012 compared with $1,386.3 billion at the end of 2011. The $155.3 billion increase was mostly a result of net purchases. Foreign private holdings of U.S. securities other than U.S. Treasury securities were $6,904.1 billion at the end of 2012 compared with $6,151.6 billion at the end of 2011. The $752.5 billion increase was mostly attributable to price increases of U.S. stocks and to net purchases. The stock of U.S. currency abroad was $454.2 billion at the end of 2012 compared with $397.1 billion at the end of 2011. Liabilities to private foreign residents reported by U.S. nonbanks were $656.5 billion at the end of 2012 compared with $630.9 billion at the end of 2011. Liabilities to private foreign residents reported by U.S. banks and securities brokers were $3,633.4 billion at the end of 2012 compared with $4,034.5 billion at the end of 2011. Annual Revisions The U.S. international investment position statistics released today have been revised for the first quarter of 2009 to the fourth quarter of 2012. The revisions reflect newly available data from three Treasury International Capital (TIC) surveys conducted by the Federal Reserve Board and the U.S. Department of the Treasury: Aggregate Holdings of Long-Term Securities by U.S. and Foreign Residents (SLT), the Benchmark Survey of U.S. Ownership of Foreign Securities (SHC) at end-December 2011, and the Annual Survey of Foreign Portfolio Holdings of U.S. Securities (SHLA) at end-June 2012. The SLT is a new monthly report that surveys U.S. custodians, issuers of U.S. securities, and U.S. end-investors to obtain cross-border holdings of U.S. and foreign equity and long-term debt securities by country. BEA has incorporated these new data beginning with position statistics for the end of 2011. The new SLT data have allowed BEA to improve its quarterly position statistics and related financial flow and income statistics for long-term securities. Revisions to the U.S. international investment position statistics also reflect other newly available and revised data from the TIC reporting system and from BEA’s surveys of direct investment including the 2009 Benchmark Survey of U.S. Direct Investment Abroad. Revisions to the quarterly U.S. net international investment position averaged 1.6% for 2009, 3.8% for 2010, 9.1% for 2011, and 9.6% for 2012. Revisions are largest in the third and the fourth quarters of 2012. The net investment position at yearend 2012 is revised by $552.4 billion, becoming less negative, reflecting upward revisions to U.S. assets abroad that exceeded upward revisions to foreign-owned assets in the United States. On a yearend basis, the U.S. net international investment position is revised by $46.6 billion, becoming less negative for yearend 2009, $223.3 billion for yearend 2010, $299.7 billion for yearend 2011, and $552.4 billion for yearend 2012. * U.S.-owned assets abroad at yearend 2009 are revised upward $46.8 billion mostly as a result of the incorporation of BEA’s 2009 Benchmark Survey of U.S. Direct Investment Abroad. * U.S.-owned assets abroad are revised upward $256.6 billion for yearend 2010, $503.8 billion for yearend 2011, and $877.5 billion for yearend 2012, reflecting large revisions to U.S. holdings of foreign securities, mostly as a result of BEA’s incorporation of the new SLT survey data. * Foreign-owned assets in the United States at yearend 2009 are virtually unrevised. They are revised upward $33.3 billion for yearend 2010, mostly as a result of revisions to foreign direct investment in the United States. * Foreign-owned assets in the United States are revised upward $204.1 billion for yearend 2011 and $325.2 billion for yearend 2012, reflecting revisions to foreign holdings of U.S. securities, mostly as a result of BEA’s incorporation of the new SLT survey data. The July SURVEY OF CURRENT BUSINESS will contain an article with a more detailed discussion of the international investment position statistics for the first quarter of 2013, annual statistics for 2012, and revised historical data. That issue will also contain an article about direct investment positions valued at historical-cost and revised historical data on direct investment with detail by country and industry. Valuing the Components of the U.S. International Investment Position Investment positions for long-term portfolio securities are based on market values from monthly, annual, and benchmark surveys conducted by the Treasury International Capital (TIC) reporting system of the U.S. Department of the Treasury. Investment positions for financial derivatives are based on fair market values from quarterly surveys conducted by the TIC reporting system. Investment positions for claims and liabilities reported by banks, securities brokers, and other nonbanks are based on contractual (face) values of instruments as reported by financial institutions for both their own accounts and the accounts of their customers on the monthly and quarterly surveys conducted by the TIC reporting system with supplementary data for U.S. nonbanks from foreign central banks. Investment positions for direct investment are valued at current-period prices based on a revaluation of book values. Book values are reported by U.S. multinational companies on surveys conducted by BEA. Direct investment at current cost is BEA’s featured measure of direct investment at current-period prices./3/ The current-cost method values the U.S. and foreign parent shares of their affiliates’ investment in (1) plant and equipment using the current cost of capital equipment, (2) land using general price indexes, and (3) inventories using estimates of their replacement cost./4/ * * * Release dates in 2013: End of the Fourth Quarter and Year 2012............................March 26, 2013 (Tuesday) End of the First Quarter of 2013, Year 2012, and Annual Revisions...June 25, 2013 (Tuesday) End of the Second Quarter of 2013..............................September 24, 2013 (Tuesday) End of the Third Quarter of 2013.................................December 30, 2013 (Monday) * * * BEA’s national, international, regional, and industry statistics; the Survey of Current Business; and BEA news releases are available without charge at www.bea.gov. At the site, you can also subscribe to receive free e-mail summaries (http://www.bea.gov/_subscribe/index_vocus.htm) of BEA releases and announcements. 1 For statistics on financial flows, see the financial account transactions of the U.S. International Transactions Accounts in Table 1 (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=1). Detailed valuation changes such as price, exchange-rate, and other changes are available only for the annual statistics. 2 Board of Governors of the Federal Reserve System (FRS), Flow of Funds Accounts of the United States, Flows and Outstandings, First Quarter 2013, Release Z.1. Statistical Release (Washington, DC: FRS, June 6, 2013) Table L.5, page 11. According to June 2013 Z.1 release, the value of all U.S. financial assets was $168,691.8 billion at the end of 2012. U.S. assets abroad from the international investment position were $21,637.6 billion at the end of 2012, 12.8% of all U.S. assets, down from 13.7% in 2011 and from the 13.8% series peak in 2008. 3 BEA publishes direct investment at market value as an alternative current-period price measure with owners’ equity revalued using indexes of stock market prices. BEA also publishes direct investment at historical cost with owners’ equity at the book value reported on BEA’s surveys. Country and industry detail for direct investment are available only on a historical-cost basis see (http://www.bea.gov/iTable/index_MNC.cfm). 4 For additional information on the current-cost and market-value methods, see J. Steven Landefeld and Ann M. Lawson, “Valuation of the U.S. Net International Investment Position,” (http://www.bea.gov/scb/pdf/internat/bpa/1991/0591bop.pdf) Survey of Current Business 71 (May 1991): 40–49. __________________ NOTE: This news release is available on BEA’s Web site along with Quarterly Highlights (http://www.bea.gov/newsreleases/international/intinv/2013/pdf/intinv113_fax.pdf) and Annual Highlights (http://www.bea.gov/newsreleases/international/intinv/2013/pdf/intinv113annual_fax.pdf) related to this release, the latest detailed statistics (http://www.bea.gov/international/index.htm#iip) for the U.S. international investment position, and a description of the estimation methods (http://www.bea.gov/scb/pdf/2010/02 February/0210_guide.pdf) used to compile them. The first-quarter statistics for 2013 in this release are preliminary and will be revised on September 24, 2013. Table 1. International Investment Position of the United States at the End of the Quarter /1/ [Millions of dollars, not seasonally adjusted] Change: Change: Line Type of investment 2011 2012 2013 2012:IV to 2011:IV to IV r I r II r III r IV r I p 2013:I 2012:IV 1 Net international investment position of the United States (lines 2+3)................................ -3,730,590 -3,886,446 -4,332,158 -4,109,198 -3,863,892 -4,277,128 -413,236 -133,302 2 Financial derivatives, net (line 5 less line 25).................................................... 86,039 76,286 67,589 52,493 57,776 38,986 -18,790 -28,263 3 Net international investment position, excluding financial derivatives (line 6 less line 26)........ -3,816,629 -3,962,732 -4,399,747 -4,161,691 -3,921,668 -4,316,114 -394,446 -105,039 4 U.S.-owned assets abroad (lines 5+6)................................................................ 21,636,152 21,349,048 20,948,183 21,551,595 21,637,618 21,618,571 -19,047 1,466 5 Financial derivatives (gross positive fair value)................................................. 4,716,578 3,950,239 4,155,820 3,925,606 3,619,761 3,245,866 -373,895 -1,096,817 6 U.S.-owned assets abroad, excluding financial derivatives (lines 7+12+17)......................... 16,919,574 17,398,809 16,792,363 17,625,989 18,017,857 18,372,705 354,848 1,098,283 7 U.S. official reserve assets...................................................................... 537,037 572,578 556,620 606,277 572,368 553,058 -19,310 35,331 8 Gold /2/........................................................................................ 400,355 434,742 418,006 464,422 433,434 417,941 -15,493 33,079 9 Special drawing rights.......................................................................... 54,956 55,460 54,341 55,232 55,050 53,704 -1,346 94 10 Reserve position in the International Monetary Fund............................................. 30,080 31,436 33,930 35,248 34,161 34,039 -122 4,081 11 Foreign currencies.............................................................................. 51,646 50,940 50,343 51,375 49,723 47,374 -2,349 -1,923 12 U.S. government assets, other than official reserve assets........................................ 178,901 127,814 111,164 95,958 93,570 92,744 -826 -85,331 13 U.S. credits and other long-term assets /3/..................................................... 78,373 80,642 82,500 82,691 84,029 84,099 70 5,656 14 Repayable in dollars.......................................................................... 78,100 80,369 82,227 82,418 83,756 83,826 70 5,656 15 Other /4/..................................................................................... 273 273 273 273 273 273 0 0 16 U.S. foreign currency holdings and U.S. short-term assets /5/................................... 100,528 47,172 28,664 13,267 9,541 8,645 -896 -90,987 17 U.S. private assets............................................................................... 16,203,636 16,698,417 16,124,579 16,923,754 17,351,919 17,726,903 374,984 1,148,283 18 Direct investment at current cost............................................................... 4,663,142 4,759,096 4,826,428 4,983,377 5,077,750 5,160,096 82,346 414,608 19 Foreign securities.............................................................................. 6,441,350 6,999,263 6,662,323 7,159,326 7,531,223 7,824,667 293,444 1,089,873 20 Bonds......................................................................................... 1,939,912 1,960,498 1,946,486 2,052,037 2,140,685 2,174,111 33,426 200,773 21 Corporate stocks.............................................................................. 4,501,438 5,038,765 4,715,837 5,107,289 5,390,538 5,650,556 260,018 889,100 22 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns..................... 792,953 869,251 845,301 845,865 844,752 900,300 55,548 51,799 23 U.S. claims reported by U.S. banks and securities brokers, not included elsewhere............... 4,306,191 4,070,807 3,790,527 3,935,186 3,898,194 3,841,840 -56,354 -407,997 24 Foreign-owned assets in the United States (lines 25+26)............................................. 25,366,742 25,235,494 25,280,341 25,660,793 25,501,510 25,895,699 394,189 134,768 25 Financial derivatives (gross negative fair value)................................................. 4,630,539 3,873,953 4,088,231 3,873,113 3,561,985 3,206,880 -355,105 -1,068,554 26 Foreign-owned assets in the United States, excluding financial derivatives (lines 27+34).......... 20,736,203 21,361,541 21,192,110 21,787,680 21,939,525 22,688,819 749,294 1,203,322 27 Foreign official assets in the United States...................................................... 5,256,358 5,428,122 5,496,057 5,640,245 5,692,448 5,823,304 130,856 436,090 28 U.S. government securities...................................................................... 4,235,886 4,316,906 4,400,470 4,487,789 4,526,896 4,561,428 34,532 291,010 29 U.S. Treasury securities...................................................................... 3,620,580 3,722,551 3,857,872 3,958,112 4,032,204 4,090,723 58,519 411,624 30 Other......................................................................................... 615,306 594,355 542,598 529,677 494,692 470,705 -23,987 -120,614 31 Other U.S. government liabilities /6/........................................................... 119,980 123,406 125,065 127,657 128,279 128,052 -227 8,299 32 U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere.......... 205,973 191,515 191,921 198,987 204,401 224,462 20,061 -1,572 33 Other foreign official assets................................................................... 694,519 796,295 778,601 825,812 832,872 909,362 76,490 138,353 34 Other foreign assets.............................................................................. 15,479,845 15,933,419 15,696,053 16,147,435 16,247,077 16,865,515 618,438 767,232 35 Direct investment at current cost............................................................... 2,879,531 2,913,781 2,976,814 3,029,271 3,057,326 3,085,679 28,353 177,795 36 U.S. Treasury securities........................................................................ 1,386,274 1,425,087 1,455,648 1,517,253 1,541,569 1,649,654 108,085 155,295 37 U.S. securities other than U.S. Treasury securities............................................. 6,151,552 6,608,954 6,491,227 6,794,000 6,904,050 7,307,973 403,923 752,498 38 Corporate and other bonds..................................................................... 2,894,604 2,927,923 2,887,851 3,008,379 3,061,963 3,058,746 -3,217 167,359 39 Corporate stocks.............................................................................. 3,256,948 3,681,031 3,603,376 3,785,621 3,842,087 4,249,227 407,140 585,139 40 U.S. currency................................................................................... 397,086 415,143 422,259 438,415 454,227 459,184 4,957 57,141 41 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns................ 630,925 683,453 680,186 678,508 656,522 633,734 -22,788 25,597 42 U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere.......... 4,034,477 3,887,001 3,669,919 3,689,988 3,633,383 3,729,291 95,908 -401,094 Memoranda: 43 Direct investment abroad at market value.............................................................. 4,513,863 4,975,809 4,679,267 5,058,812 5,249,539 5,518,091 268,552 735,676 44 Direct investment in the United States at market value................................................ 3,510,395 3,855,543 3,764,768 3,961,992 3,923,969 4,261,069 337,100 413,574 45 Direct investment abroad at historical cost........................................................... 4,084,659 4,169,123 4,224,965 4,370,424 4,453,307 4,535,653 82,346 368,648 46 Direct investment in the United States at historical cost............................................. 2,502,628 2,529,479 2,585,115 2,630,175 2,650,832 2,679,185 28,353 148,204 p Preliminary r Revised 1. The statistics for each quarter are the values as of the last day of the quarter; the first quarter ends on March 31; the second quarter ends on June 30; the third quarter ends on September 30; and the fourth quarter ends on December 31 of the year. 2. U.S. official gold stock is valued at market price. 3. Also includes paid-in capital subscriptions to international financial institutions and outstanding amounts of miscellaneous claims that have been settled through international agreements to be payable to the U.S. government over periods in excess of 1 year. Excludes World War I debts that are not being serviced. 4. Includes indebtedness that the borrower may contractually, or at its option, repay with its currency, with a third country's currency, or by delivery of materials or transfer of services. 5. Includes foreign-currency-denominated assets obtained through temporary reciprocal currency arrangements between the Federal Reserve System and foreign central banks. These assets are included in the investment position at the dollar value established at the time they were received, reflecting the valuation of these assets in the Federal Reserve System's balance sheet. Changes in exchange rates do not affect this valuation. 6. Includes U.S. government liabilities associated with military sales contracts and U.S. government reserve-related liabilities from allocations of special drawing rights (SDRs). Source: Bureau of Economic Analysis Table 2. International Investment Position of the United States at Yearend, 2011 and 2012 [Millions of dollars] Changes in position in 2012 Attributable to: Valuation adjustments Line Type of investment Position, Position, 2011 r Exchange- 2012 r Financial Price rate Other flows changes changes/1/ changes/2/ Total (a) (b) (c) (d) (a+b+c+d) 1 Net international investment position of the United States (lines 2+3)................................ -3,730,590 -439,351 489,566 5,100 -188,618 -133,302 -3,863,892 2 Financial derivatives, net (line 5 less line 25) /3/................................................ 86,039 7,064 /4/ /4/ /4/-35,327 -28,263 57,776 3 Net international investment position, excluding financial derivatives (line 6 less line 26)........ -3,816,629 -446,415 489,566 5,100 -153,291 -105,039 -3,921,668 4 U.S.-owned assets abroad (lines 5+6)................................................................ 21,636,152 /3/ /3/ /3/ /3/ 1,466 21,637,618 5 Financial derivatives (gross positive fair value)................................................. 4,716,578 /3/ /3/ /3/ /3/ -1,096,817 3,619,761 6 U.S.-owned assets abroad, excluding financial derivatives (lines 7+12+17)......................... 16,919,574 97,469 990,880 5,909 4,024 1,098,283 18,017,857 7 U.S. official reserve assets...................................................................... 537,037 4,460 33,079 -2,208 0 35,331 572,368 8 Gold............................................................................................ 400,355 0 /5/33,079 ..... /6/0 33,079 433,434 9 Special drawing rights.......................................................................... 54,956 37 ..... 57 0 94 55,050 10 Reserve position in the International Monetary Fund............................................. 30,080 4,032 ..... 49 0 4,081 34,161 11 Foreign currencies.............................................................................. 51,646 391 ..... -2,314 0 -1,923 49,723 12 U.S. government assets, other than official reserve assets........................................ 178,901 -85,331 ..... (*) 0 -85,331 93,570 13 U.S. credits and other long-term assets /7/..................................................... 78,373 5,656 ..... (*) 0 5,656 84,029 14 Repayable in dollars.......................................................................... 78,100 5,656 ..... ..... 0 5,656 83,756 15 Other /8/..................................................................................... 273 0 ..... (*) ..... 0 273 16 U.S. foreign currency holdings and U.S. short-term assets /9/................................... 100,528 -90,987 ..... (*) ..... -90,987 9,541 17 U.S. private assets............................................................................... 16,203,636 178,341 957,801 8,117 4,024 1,148,283 17,351,919 18 Direct investment at current cost............................................................... 4,663,142 388,293 25,339 16,234 -15,258 414,608 5,077,750 19 Foreign securities.............................................................................. 6,441,350 144,823 932,462 -7,412 20,000 1,089,873 7,531,223 20 Bonds......................................................................................... 1,939,912 62,243 139,503 -973 0 200,773 2,140,685 21 Corporate stocks.............................................................................. 4,501,438 82,580 792,959 -6,439 20,000 889,100 5,390,538 22 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns..................... 792,953 25,723 ..... 3,194 22,882 51,799 844,752 23 U.S. claims reported by U.S. banks and securities brokers, not included elsewhere............... 4,306,191 -380,498 ..... -3,899 -23,600 -407,997 3,898,194 24 Foreign-owned assets in the United States (lines 25+26)............................................. 25,366,742 /3/ /3/ /3/ /3/ 134,768 25,501,510 25 Financial derivatives (gross negative fair value)................................................. 4,630,539 /3/ /3/ /3/ /3/ -1,068,554 3,561,985 26 Foreign-owned assets in the United States, excluding financial derivatives (lines 27+34).......... 20,736,203 543,884 501,314 809 157,315 1,203,322 21,939,525 27 Foreign official assets in the United States...................................................... 5,256,358 393,922 42,110 58 0 436,090 5,692,448 28 U.S. government securities...................................................................... 4,235,886 314,660 -23,650 ..... 0 291,010 4,526,896 29 U.S. Treasury securities...................................................................... 3,620,580 433,155 -21,531 ..... 0 411,624 4,032,204 30 Other......................................................................................... 615,306 -118,495 -2,119 ..... 0 -120,614 494,692 31 Other U.S. government liabilities /10/.......................................................... 119,980 8,241 ..... 58 0 8,299 128,279 32 U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere.......... 205,973 -1,572 ..... ..... 0 -1,572 204,401 33 Other foreign official assets................................................................... 694,519 72,593 65,760 ..... 0 138,353 832,872 34 Other foreign assets.............................................................................. 15,479,845 149,962 459,204 751 157,315 767,232 16,247,077 35 Direct investment at current cost............................................................... 2,879,531 166,411 20,385 606 -9,607 177,795 3,057,326 36 U.S. Treasury securities........................................................................ 1,386,274 156,385 -1,090 0 0 155,295 1,541,569 37 U.S. securities other than U.S. Treasury securities............................................. 6,151,552 196,908 439,909 -897 116,578 752,498 6,904,050 38 Corporate and other bonds..................................................................... 2,894,604 23,584 125,774 -897 18,898 167,359 3,061,963 39 Corporate stocks.............................................................................. 3,256,948 173,324 314,135 ..... 97,680 585,139 3,842,087 40 U.S. currency................................................................................... 397,086 57,141 ..... ..... 0 57,141 454,227 41 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns................ 630,925 -39,505 ..... 3,158 61,944 25,597 656,522 42 U.S. liabilities reported by U.S. banks and securities brokers, not included elsewhere.......... 4,034,477 -387,378 ..... -2,116 -11,600 -401,094 3,633,383 Memoranda: 43 Direct investment abroad at market value.............................................................. 4,513,863 388,293 301,652 48,194 -2,463 735,676 5,249,539 44 Direct investment in the United States at market value................................................ 3,510,395 166,411 260,399 ..... -13,236 413,574 3,923,969 r Revised * Less than $500,000 (+/-) ..... Not applicable 1. Represents gains or losses on foreign-currency-denominated assets and liabilities due to their revaluation at current exchange rates. 2. Includes changes due to year-to-year shifts in the composition of reporting panels, primarily for bank and nonbank estimates, and to the incorporation of more comprehensive survey results. Also includes capital gains and losses of direct investment affiliates and changes in positions that cannot be allocated to financial flows, price changes, or exchange-rate changes. 3. Financial flows and valuation adjustments for financial derivatives are available only on a net basis, which is shown on line 2; they are not separately available for gross positive fair values and gross negative fair values of financial derivatives. Consequently, columns (a) through (d) on lines 4, 5, 24, and 25 are not available. 4. Data are not separately available for the three types of valuation adjustments; therefore, the sum of all three types is shown in column (d). 5. Reflects changes in the value of the official gold stock due to fluctuations in the market price of gold. 6. Reflects changes in gold stock from U.S. Treasury sales of gold medallions and commemorative and bullion coins; also reflects replenishment through open market purchases. These demonetizations/monetizations are not included in international transactions financial flows. 7. Also includes paid-in capital subscriptions to international financial institutions and outstanding amounts of miscellaneous claims that have been settled through international agreements to be payable to the U.S. government over periods in excess of 1 year. Excludes World War I debts that are not being serviced. 8. Includes indebtedness that the borrower may contractually, or at its option, repay with its currency, with a third country's currency, or by delivery of materials or transfer of services. 9. Includes foreign-currency-denominated assets obtained through temporary reciprocal currency arrangements between the Federal Reserve System and foreign central banks. These assets are included in the investment position at the dollar value established at the time they were received, reflecting the valuation of these assets in the Federal Reserve System’s balance sheet. Changes in exchange rates does not affect this valuation. 10. Includes U.S. government liabilities associated with military sales contracts and U.S. government reserve-related liabilities from allocations of special drawing rights (SDRs). Source: Bureau of Economic Analysis