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Japan's International Investment Position at Year-End 2011*1

  • *1 This is an English translation of the Japanese original released on May 31, 2012

August 20, 2012
International Department
Bank of Japan

Summary

A. Developments in Japan's International Investment Position (IIP) at Year-End 2011

Japan's external financial assets increased as a whole in 2011 mainly due to increases in reserve assets and loans reflecting net outflows in transactions. The impact of these financial flows was partly offset by the yen's appreciation, which lowered the yen value of foreign currency-denominated assets.

Japan's external liabilities also increased as a whole in 2011. This was mainly due to increases in foreign holdings of Japanese money market instruments (MMIs) and in loans (liabilities) to foreign residents, which were partly offset by a decrease in the value of foreign holdings of Japanese equity securities due to a fall in Japanese equity prices.

Japan's net asset position increased in 2011 as the increase in external financial assets exceeded that in external liabilities. Net assets stood at 253.0 trillion yen at year-end 2011, up from 251.5 trillion yen at year-end 2010.

  • Figure 1

B. Major Features of Each Category

(1) Direct investment (assets: 74.8 trillion yen; liabilities: 17.5 trillion yen)

Outward direct investment (assets) increased by 7.1 trillion yen or 10.5 percent.
Inward direct investment (liabilities) remained more or less unchanged.

(2) Portfolio investment (assets: 262.3 trillion yen; liabilities: 157.5 trillion yen)

Outward portfolio investment (assets) decreased by 10.2 trillion yen or 3.7 percent.
Inward portfolio investment (liabilities) increased by 5.0 trillion yen or 3.3 percent.

(3) Financial derivatives (assets: 4.2 trillion yen; liabilities: 5.6 trillion yen)

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

(4) Other investment (assets: 140.2 trillion yen; liabilities: 148.4 trillion yen)

Other investment assets increased by 10.5 trillion yen or 8.1 percent.
Other investment liabilities increased by 11.6 trillion yen or 8.4 percent.

(5) Reserve assets (assets: 100.5 trillion yen)

Reserve assets increased by 11.2 trillion yen or 12.5 percent.

Japan's international investment position (IIP) was released on May 22, 2012, by the Ministry of Finance and the Bank of Japan as the International Investment Position of Japan (End of 2011). The regional breakdown is available on the Bank of Japan's web site.

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