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Japan's International Investment Position at Year-End 2009 *1

  • *1This is an English translation of the Japanese original released on May 25, 2010.

September 3, 2010
International Department
Bank of Japan

I. Summary

A. Developments in Japan's International Investment Position (IIP) at Year-End 2009

Japan's external financial assets, which had decreased significantly in 2008 reflecting a fall in the yen value of foreign currency-denominated assets due to the appreciation of the yen and declines in equity prices, increased again in 2009 due mainly to (1) the depreciation of the yen; (2) active outward portfolio investment; and (3) the recovery in equity prices. At the same time, Japan's net asset position at year-end 2009 was slightly higher than the record-high registered in 2007, reflecting a slight decrease in external financial liabilities (250.2 trillion yen at year-end 2007; 225.5 trillion yen at year-end 2008; and 266.2 trillion yen at year-end 2009).

  • Figure 1

Note: Figures for 1995 and after are calculated in accordance with the fifth edition of the Balance of Payments Manual
issued by the International Monetary Fund (IMF), while those for years through 1994 are based on the fourth edition.

B. Major Trends for Each Component

(1) Direct investment (assets: 68.2 trillion yen; liabilities: 18.4 trillion yen)

Direct investment assets increased by 6.5 trillion yen or 10.5 percent.
Direct investment liabilities remained more or less unchanged.

(2) Portfolio investment (assets: 262.0 trillion yen; liabilities: 141.9 trillion yen)

Portfolio investment assets increased by 46.3 trillion yen or 21.5 percent.
Portfolio investment liabilities increased by 1.6 trillion yen or 1.1 percent.

(3) Financial derivatives (assets: 4.3 trillion yen; liabilities: 5.2 trillion yen)

Both financial derivatives assets and liabilities decreased.

(4) Other investment (assets: 123.6 trillion yen; liabilities: 123.1 trillion yen)

Other investment assets decreased by 18.2 trillion yen or 12.8 percent.
Other investment liabilities decreased by 4.1 trillion yen or 3.2 percent.

(5) Reserve assets (assets: 96.8 trillion yen)

Reserve assets increased by 3.8 trillion yen or 4.1 percent.

Japan's international investment position statistics (IIP) were made public in Japanese on May 25, 2010, by the Ministry of Finance and the Bank of Japan as the Report on External Assets and Liabilities as of Year-End 2009 . The regional breakdown is available on this web site.

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