The international investment position reflects, at a specific point in time (end of quarter and end of year), the amount of claims and liabilities of residents vis-à-vis non-residents, including gold reserves and foreign currency reserves of the country.
The difference between claims and liabilities constitutes the net international investment position, which based on the sign (positive or negative), characterises the country as a net creditor or debtor vis-à-vis the rest of the world, respectively. In calculating the net international investment position, one should take into account the value adjustments resulting from asset price changes as well as other changes which might occur, for example, due to foreign exchange movements, reclassifications and write-offs.
The data used for the calculation of the net international investment position in each category (foreign direct investment, portfolio investment, financial derivatives, other investment and foreign currency reserves), are collected from the banking system, the surveys on Foreign Direct Investment, Other Investment and Securities conducted by the Central Bank of Cyprus, the Cyprus Stock Exchange, the Ministry of Finance as well as other sources.