Foreign investment in US down 19 February 2018Washington DC Reporter: Brian Bollen
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Official figures, released 15 February, by the US Department of the Treasury show a drop in
foreign investment in the US in December.
The sum total of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a monthly net Treasury International Capital (TIC) outflow of $119.3 billion in December.
By far the biggest component of the total figure in the TIC data for December 2017 is the $107.1 billion reduction of dollar-denominated bank liabilities of banks to foreign residents.
In short, foreign residents withdrew $107.1 billion of cash or other assets from the banking system.
Of this, net foreign private outflows were $70 billion, and net foreign official outflows were $49.3 billion.
Foreign residents increased their holdings of long-term US securities in December; net purchases were $34.3 billion.
Net purchases by private foreign investors were $42.3 billion, while net sales by foreign official institutions were $8 billion.
US residents increased their holdings of long-term foreign securities, with net purchases of $7 billion.
Taking into account transactions in both foreign and US securities, net foreign purchases of long-term securities were $27.3 billion.
After including adjustments, for example estimates of unrecorded principal payments to foreigners on US asset-backed securities, overall net foreign purchases of long-term securities are calculated to have been $11.9 billion in December.
Foreign residents cut their holdings of US Treasury bills by $9.7 billion. The value of all dollar-denominated short-term US securities and other custody liabilities held by foreign residents fell by $24.1 billion.
The next release, reporting on data for January 2018, is scheduled for 15 March.
Complete data are available on the Treasury website at: www.treasury.gov/resource-center/data- chart-center/tic/Pages/index.aspx
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