Research and Studies

Home > Research and Studies > BOJ Reports & Research Papers > Research Papers 2011 > (Research Paper) Japan's International Investment Position at Year-End 2010

Japan's International Investment Position at Year-End 2010*1

  • *1  This is an English translation of the Japanese original released on May 26, 2011

August 26, 2011
International Department
Bank of Japan

Summary

A. Developments in Japan's International Investment Position (IIP) at Year-End 2010

Japan's external financial assets increased in 2010. While the yen value of foreign currency- denominated assets decreased due to the yen's appreciation, this was more than offset by net purchases of foreign securities by Japanese investors under portfolio investment and increases in securities prices reflecting rising equity prices and declining interest rates.

Japan's external liabilities also increased in 2010, mainly due to net purchases of Japanese securities by foreign investors under portfolio investment and an increase in loans.

Japan's net asset position decreased in 2010 as the increase in external liabilities exceeded that in external financial assets. Net assets stood at 251.5 trillion yen at year-end 2010 after 266.2 trillion yen at year-end 2009 and 225.5 trillion yen at year-end 2008.

  • Figure 1

Note: Figures for 1995 and after are calculated in accordance with the fifth edition of the Balance of Payments Manual issued by the International Monetary Fund (IMF), while those for years through 1994 are based on the fourth edition.

B. Major Features of Each Component

(1) Direct investment (assets: 67.7 trillion yen; liabilities: 17.5 trillion yen)

Outward direct investment (assets) decreased by 0.5 trillion yen or 0.8 percent.
Inward direct investment (liabilities) decreased by 0.9 trillion yen or 5.0 percent.

(2) Portfolio investment (assets: 272.5 trillion yen; liabilities: 152.5 trillion yen)

Outward portfolio investment (assets) increased by 10.5 trillion yen or 4.0 percent.
Inward portfolio investment (liabilities) increased by 10.6 trillion yen or 7.4 percent.

(3) Financial derivatives (assets: 4.3 trillion yen; liabilities: 5.3 trillion yen)

Both financial derivatives assets and liabilities remained more or less unchanged.

(4) Other investment (assets: 129.7 trillion yen; liabilities: 136.8 trillion yen)

Other investment assets increased by 6.1 trillion yen or 4.9 percent.
Other investment liabilities increased by 13.7 trillion yen or 11.2 percent.

(5) Reserve assets (assets: 89.3 trillion yen)

Reserve assets decreased by 7.4 trillion yen or 7.7 percent.

Japan's international investment position (IIP) statistics were made public on May 24, 2011, by the Ministry of Finance and the Bank of Japan as the International Investment Position of Japan (End of 2010). The regional breakdown is available on the Bank of Japan's web site.

Notice

Please contact below in advance to request permission when reproducing or copying the content of this report for commercial purposes.
International Department, Bank of Japan
P.O. Box 30, Nihonbashi, Tokyo 103-8660, Japan
e-mail: post.ind6@boj.or.jp
Please credit the source when reproducing or copying the content of this report.