Financial Account

Records transactions in New Zealand's financial investment abroad (asset), and foreign investment in New Zealand (liabilities). Each of the asset and liability sides of the account records transactions that increase and decrease investments.

The financial account is classified into assets and liabilities, which are broken down by type of investment (direct, portfolio, financial derivatives, other investment, and reserve assets) and instrument of investment.

Note that we record the income generated/paid from holding an asset/liability in the primary income component of the BoP current account.