[I4] Australia's gross foreign assets and liabilities

I4 AUSTRALIA'S GROSS FOREIGN ASSETS AND LIABILITIES

The data are from ABS Cat No 5302.0. All data are expressed in current prices and are not seasonally adjusted.

‘Official sector’ comprises general government and the RBA. Non-reserve foreign assets held by the RBA are included in general government.

‘Non-official sector’ comprises private corporate trading enterprises, banks, unincorporated businesses, State and Territory Government central borrowing authorities and commercially oriented public non-financial corporations.

‘Direct investment’ broadly includes capital invested in an enterprise by an investor having a significant influence, either potentially or actually exercised, over the key policies of the enterprise. Prior to June 1986, this meant ownership of 25 per cent or more of the ordinary shares or voting stock of that enterprise. The threshold was reduced to 10 per cent in June 1986.

‘Portfolio investment’ covers capital invested in an enterprise by an investor that is assumed to not significantly influence key policies of the enterprise. Portfolio investment uses the same ownership threshold as direct investment – since June 1986 ownership of less than 10 per cent of the ordinary shares or voting stock.

‘Financial derivatives’ are identified separately to portfolio investment from June 1994. Financial derivatives are secondary securities linked to specific financial instruments, indicators or commodities, which give the holder a qualified right to receive a benefit at some future date. Examples include options (on currencies, interest rates, commodities, indices, etc), futures, warrants and currency and interest rate swaps.

Total assets and liabilities also include ‘other investment’ by the non-official sector which covers finance not included in direct investment, portfolio investment, financial derivatives and reserve assets. It also includes trade credits, loans, currency and deposits and other assets and liabilities.

‘Gross total foreign debt and other liabilities’ includes deposits by non-residents with the RBA, which are classified as foreign borrowing by the ABS.

Foreign currency debt excludes reserve assets that are unable to be allocated by currency and, prior to September 1999, derivatives that were unable to be allocated by currency.

‘Gross total foreign equity liabilities’ is measured at paid-up value before June 1980. From June 1980 this component is measured at market value.

‘Gross total foreign equity assets’ is measured at market value from June 1986. Before that date, this component is measured on a variety of bases, including paid-up value.

For detailed information about these data see Balance of Payments and International Investment Position, Australia: Concepts, Sources and Methods (ABS Cat No 5331.0).