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Abstract

This article explores recent advancements in the measurement of cross-border financial flows and positions, as introduced in the latest edition of the International Monetary Fund (IMF)'s Integrated Balance of Payments and International Investment Position Manual (BPM7). It highlights how BPM7 enhances the presentation of foreign direct investment, portfolio investment, and other financial instruments, while emphasizing the policy value of integrating balance of payments (BOP) flows with international investment position (IIP) data through the integrated IIP framework. These innovations offer a more coherent and comprehensive view of global financial linkages, supporting improved analysis of systemic risks and more informed financial stability policymaking.

Keywords

balance of payments integrated IIP global financial linkages financial stability systemic risk

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References

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Mapping global financial interconnectedness: New statistics on cross-border flows and positions

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