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International Investment Position For September 2016

Fiji’s Net International Investment Position (NIIP) indicates the level of foreign assets minus its foreign liabilities. The NIIP can therefore be regarded as a nation’s balance sheet with the rest
21 Jan 2017 11:00
International Investment Position For September 2016
Source: Fiji Bureau of Statistics

Fiji’s Net International Investment Position (NIIP) indicates the level of foreign assets minus its foreign liabilities.

The NIIP can therefore be regarded as a nation’s balance sheet with the rest of the world at a specific point in time.

NIIP includes overseas assets and liabilities held by a nation’s government, the private sector and its citizens.

Administrative and survey data have been used to compile the International Investment Position in accordance with the 6th edition of the International Monetary Fund’s Balance of Payments Manual.

All values in this release are in Fiji Dollars (FJD).

Fiji’s Net International Investment Position was -$7,905.8 million as at 30th September 2016.

The Net International Investment Position rose by $323.1 million when compared to the June Quarter of 2016.

The figure stood at -$7,417.9 million a year earlier. The amount reflects a much higher value of foreign investment in Fiji compared to Fiji’s investments abroad.

 

Fiji’s International Liabilities

Records the liabilities of Fiji residents to non-residents.

Fiji’s international liability was valued at $11,119.2 million as at 30th September 2016. The breakdowns by liability type are as follows:

  1. i) Direct Investment: $8,509.8 million (76.5%);
  2. ii) Portfolio Investment: $185.3 million (1.7%);

iii) Other Investment: $2,424.1 million (21.8%).

 

The breakdown for other investment by instruments are as follows:

  1. i) Loans ($1,504.8 million);
  2. ii) Currency and deposits ($396.7 million);

iii) Other accounts payable ($326.7 million);

  1. iv) Special drawing rights ($192.5 million); and
  2. v) Other equity ($3.4 million).

 

Fiji’s International Assets

Records the financial assets of residents of Fiji that are claims on non-residents and monetary gold bullion held as reserve assets.

Fiji’s international asset was valued at $3,213.4 million as at 30th September 2016. The breakdowns by asset type are as follows:

  1. i) Direct Investment: $202.8 million (6.3%);
  2. ii) Portfolio Investment: $202.9 million (6.3%);

iii) Other Investment: $984.8 million (30.7%).

 

The breakdowns for other investment by instruments are as follows:

  1. i) Currency and deposits ($763.9 million);
  2. ii) Other accounts receivable ($154.0 million);

iii) Loans ($66.1 million); and

  1. iv) Other equity ($0.8 million).
  2. v) Reserve Assets: $1,822.9 million (56.7%).

 

Net Foreign Debt (NFD)

Net foreign debt is the amount of Fiji’s overseas lending (assets) less its overseas borrowing (liabilities). Lending and borrowing include debt instruments* only and exclude equity (shares).

Assets were valued at $2,969.3 million as at 30th September 2016. Liabilities were valued at $3,057.0 million as at 30th September 2016. Net Debt was valued at -$87.7 million as at 30th September 2016.

The figure stood at -$98.6 million a year earlier. The change in net foreign debt reflects a decrease in Currency and Deposits.

Assets and Liabilities contain the following debt instruments; currency and deposits, other accounts receivable/payable, debt securities, special drawing rights and loans. Refer to table 2 for details.

 

Net Foreign Equity (NFE)

Net Foreign Equity reflects the value of Fiji’s resident investment abroad less the non-resident investment in Fiji.

It includes equity, investment fund shares and other equity. Refer to table 2 for details.

Assets were valued at $241.8 million as at 30th September 2016.

Liabilities were valued at $8,062.2 million as at 30th September 2016. Net Equity was valued at -$7,820.4 million as at 30th September 2016.

The figure stood at -$7,321.5 million a year earlier.

The change in net foreign equity reflects an increase in liabilities (foreign investment in Fiji).

The rise in net foreign investment position and net foreign equity are healthy sign of the economy as it shows that there is an increase in investment in Fiji.

One of the recipients of these foreign investment is the tourism industry as Fiji is known to be a great tourist destination for people from overseas.

An increased investment and an increasing in earnings such as the tourism industries indicate a healthy Fiji Economy and a strong platform in the international stage.


This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at the HFC Bank, Peter Fuata.

 

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