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Japan's International Investment Position at Year-End 2012*1

  • *1This is an English translation of the Japanese original released on May 31, 2013.

August 8, 2013
International Department
Bank of Japan

Summary

A. Developments in Japan's International Investment Position (IIP) at Year-End 20121

Japan's external financial assets increased in 2012. Specifically, Japanese holdings of foreign bonds and notes increased due to an increase in their yen value reflecting the yen's depreciation compared to the previous year end as well as due to net purchases. Reserve assets also increased due to an increase in their yen value reflecting the yen's depreciation. Meanwhile, Japan's external liabilities also increased as a whole in 2012. This was due to increases in (1) foreign holdings of Japanese equity securities reflecting a rise in Japanese equity prices and (2) loans (liabilities) to foreign residents. Japan's net asset position increased in 2012 as the increase in assets exceeded that in liabilities. Net assets stood at 296.3 trillion yen at year-end 2012, up from 265.4 trillion yen at year-end 2011.

The assets, liabilities, and net assets at year-end 2012 registered all record highs for the period that comparable data are available.2

  •  1  Some figures in previous data were revised to reflect corrections of several cases of significant misreporting. For details, see "Revision of Balance of Payments and International Investment Position" released on December 10, 2012.
  •  2  Comparable data are available from 1995 for assets and liabilities and from 1986 for net assets.
  • Figure 1

B. Major Features of Each Category

(1) Direct investment (assets: 89.8 trillion yen; liabilities: 17.8 trillion yen)

Outward direct investment (assets) increased by 15.5 trillion yen or 20.9 percent.
Inward direct investment (liabilities) remained more or less unchanged.

(2) Portfolio investment (assets: 305.1 trillion yen; liabilities: 180.5 trillion yen)

Outward portfolio investment (assets) increased by 42.8 trillion yen or 16.3 percent.
Inward portfolio investment (liabilities) increased by 23.0 trillion yen or 14.6 percent.

(3) Financial derivatives (assets: 4.6 trillion yen; liabilities: 5.3 trillion yen)

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

(4) Other investment (assets: 152.9 trillion yen; liabilities: 162.0 trillion yen)

Other investment assets increased by 12.7 trillion yen or 9.1 percent.
Other investment liabilities increased by 26.5 trillion yen or 19.6 percent.

(5) Reserve assets (assets: 109.5 trillion yen)

Reserve assets increased by 8.9 trillion yen or 8.9 percent.

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