By Andrew Clayton of the Bank’s Monetary and Financial Statistics Division.
Continuing the annual series which began in 1985, this article summarises the changes to the net external asset position of the United Kingdom during 1995.
The article describes the principal influences on the external asset position of the United Kingdom arising from capital flows and from the impact of valuation changes to existing assets and liabilities. It includes an international comparison of external asset positions and also reviews developments in the United Kingdom’s net investment earnings from abroad. In addition, the boxes on pages 420 and 422 describe the preparation for an internationally co-ordinated survey of cross-border holdings of portfolio assets, and recent evidence of the scale of UK-based repo business in foreign securities.