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International Investment Position 2016

Fiji’s International Investment Position (IIP) statement provides a snapshot of the country’s international financial assets and liabilities. It measures the stock (or level) of Fiji’s financial assets and liabilities with
30 Sep 2017 10:00
International Investment Position 2016
Shoran Devi

Fiji’s International Investment Position (IIP) statement provides a snapshot of the country’s international financial assets and liabilities.

It measures the stock (or level) of Fiji’s financial assets and liabilities with the rest of the world at a particular point in time, in other words it can be seen as the nation’s balance sheet.

Administrative and survey data are used to compile the International Investment Position in accordance with the 6th edition of the International Monetary Fund’s Balance of Payments Manual and all the values in this release are in Fiji Dollars (FJD).

 

Key facts

Fiji’s Net International Investment Position was -$7,905.4 million as at 31 December 2016. The figure stood at -$7,477.8 million a year earlier. The amount reflects a much higher value of foreign investment in Fiji compared to Fiji’s investment abroad.

 

Fiji’s International Liabilities records the liabilities of Fiji residents to non-residents.

Fiji’s International Liability was valued at $11,350.0 million as at 31 December 2016. The breakdown of the liability types are as follows:

  1. Direct Investment: $8,673.0 million (76.4per cent)
  2. Portfolio Investment: $193.7 million (1.7per cent)

iii. Other Investments: $2,483.3 million (21.9per cent)

Other investments include: Loans ($1,528.5 million), Currency and Deposits ($448.4 million), Other Accounts Payable ($311.5 million), Special Drawing Rights ($191.5 million) and 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 $3,444.6 million as at 31st December 2016. The breakdowns by asset type are as follows:

  1. Direct Investment: $204.4 million (5.9 per cent)
  2. Portfolio Investment: $198.8 million (5.8 per cent)

iii. Other Investments: $1,203.1 million (34.9 per cent)

Other Investments by instrument types include: Currency and deposits ($899.2 million), other accounts receivable ($146.6 million), Loans ($157.3 million) and Reserve Assets $1,838.3 million (53.4per cent).

 

Net Foreign Debt is the amount of Fiji’s overseas lending (assets) less its overseas borrowing (liabilities). Assets were valued at $3,204.6 million as at 31st December 2016.

Liabilities were valued at $3,126.9 million as at 31st December 2016.

Net Debt was valued at $77.7 million as at 31st December 2016.

The figure stood at -$23.6 million a year earlier.

The change in Net Foreign Debt reflects a decrease in Currency and Deposits.

Asset and Liabilities contain the following debt instruments: currency and deposits, other accounts receivable/payable, debt securities, special drawing rights and loans.

 

Net Foreign Equity (NFE) 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.

Assets were valued at $237.9 million as at 31st December 2016. Liabilities were valued at $8,223.2 million as at 31st December 2016. Net Equity was valued at -$7,985.3 million as at 31st December 2016.

The figure stood at -$7,456.2 million a year earlier.

The change in Net Foreign Equity reflects an increase in liabilities (foreign investment in Fiji).

The Net International Investment Position (NIIP) position is an important indicator of a nation’s financial condition and creditworthiness.

The higher value of foreign direct investment noted in Fiji can be seen as a major catalyst to our economy’s development.

Most developing countries, emerging economies and countries in transition have come increasingly to see foreign direct investment as a source of economic development and modernisation, income growth and employment.

Foreign direct investment assists in human capital formation, contributes to international trade integration, helps in creating a more competitive business environment and enhances enterprise development.

All these combined with other factors contributes to higher economic growth, which is the most effective tool for alleviating poverty in developing countries.

Moreover, beyond the economic benefits, foreign direct investment may help improve environmental and social conditions in the host country also.

Feedback: maraia.vula@fijisun.com.fj




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