Balance of payments financial account

The balance of payments financial account is divided into, among other things, foreign direct investments, portfolio investments in shares, investment fund shares and bonds, as well as financial derivatives such as currency and interest rate swaps, Danmarks Nationalbank’s reserve assets and other investments such as loans and deposits.

The balance of payments financial account is a subset of the balance of payments, which consists of three main items: the current account, the capital account and the financial account. The balance of payments financial account shows how the current account and capital account surplus is invested in financial assets abroad. In the event of a current account deficit, the financial account shows how the deficit is financed. Danmarks Nationalbank calculates the financial account, while the current account and capital account are compiled by Statistics Denmark (link).

The statistics are compiled in accordance with the guidelines in the Balance of Payments Manual of the International Monetary Fund, IMF.