IMF Statistics Department Regional seminars support launch of Coordinated Portfolio Investment Survey n January and February, the IMF’s Statistics debt (bonds, notes, money market instruments). It does IDepartment organized five regional seminars for not include the typically less volatile direct investment, country authorities in support of the 2001 which features a more lasting interest between the two Coordinated Portfolio Investment Survey (CPIS). parties, or foreign reserves, which are controlled by the The survey is the second undertaken by the IMF to monetary authorities. improve the measurement of portfolio flows across In response to concerns about asymmetries in global national borders and to deepen understanding of how balance of payments statistics in the late 1980s, an inter- international financial markets operate. The seminars national working party, headed by Baron Jean Godeaux, were designed to explain the purpose and methodol- former Governor of the National Bank of Belgium, rec- ogy of the survey and allow officials who took part in ommended undertaking a coordinated survey of cross- the first survey, held in 1997, to share their experiences border security positions. In the mid-1990s, at the request and insights with first-time participants. of the IMF Committee on Balance of Payments Statistics, Over 70 jurisdictions participated in the seminars then IMF Managing Director Michel Camdessus invited (see box, page 109). The Belgian National Bank hosted major investing countries to participate in the first such two seminars covering the European countries, the survey, organized under the auspices of the IMF, to United States, Canada, the Middle East, and Africa. improve coverage worldwide and spread best practices in The Central Bank of Costa Rica hosted a seminar for compiling data on cross-border portfolio investments. Latin American countries; the Cayman Islands The first CPIS covered asset holdings of equities Monetary Authority hosted a seminar for small econ- and long-term debt securities. The internationally omies with international financial centers; and the coordinated approach meant that consistent guide- Australian Bureau of Statistics hosted a seminar for lines for the measurement of securities were employed the Asian-Pacific region. The Japanese government across countries, making the data comparable. Also, funded all of these seminars through a special account the information on asset holdings by country of established with the IMF. debtor provided counterpart countries with informa- tion on their liability positions in securities vis-à-vis individual creditor countries. Because the data were disseminated, market analysts and researchers also ben- efited from this coordinated effort. Twenty-nine countries, consti- tuting most of the major invest- ing countries, participated in the first survey. (Copies of Results of the 1997 Coordinated Portfolio Investment Survey and Analysis of 1997 Coordinated Portfolio Investment Survey and Plans for the 2001 Survey are available Participants at the from IMF Publication Services; seminar hosted by Background see page 115 for ordering details.) the Cayman Islands During the past two decades, the volume of interna- Monetary Authority. tional financial flows through capital markets has 2001 CPIS grown sharply. Reduced regulation, technological Since the first survey, users of statistics have continued changes, innovation, and economic globalization have to emphasize the importance of good data on securi- all contributed to this trend. But statistics have not kept ties. A lack of good information impedes the ability of pace with these developments, generally resulting in policymakers and market analysts to understand fully incomplete coverage, in particular, of portfolio invest- the impact of external flows and positions on the April 2, 2001 ment activity. Portfolio investment includes tradable domestic economy. Recent financial crises in Latin 108 securities in equity (shares, stock, participation) and America, Asia, and Russia highlighted the need for ©International Monetary Fund. Not for Redistribution improved monitoring of financial flows and stock posi- to provide data on country of holding of liabilities tions. On the recommendation of a task force repre- and disaggregations by sector and currency. The IMF senting a range of countries and chaired by Gunnar is coordinating and supporting this effort by provid- Blomberg of the Riksbank, Sweden, the IMF ing training, documentation, technical advice, and Committee on Balance of Payments Statistics decided publication of international results. The draft to conduct a second survey—this one to col- lect data as at December 31, 2001. As it did with the first survey, the task force has assumed a central role in planning the new survey. The 29 countries that participated in the first CPIS, which covered data as at December 31, 1997, have all indicated their intention to participate in the second CPIS. In addition, more than 40 other jurisdictions have expressed their intention to take part in the 2001 survey, making it one of the most far-reaching efforts aimed at enhancing the coverage and quality of economic statistics. The broader participation in the 2001 sur- vey helps fill some gaps in industrial country coverage and adds a wide range of emerging Participants at the markets. A notable feature of this study is the inclusion Coordinated Portfolio Investment Survey: Survey Guide seminar hosted by the Central Bank of of many small economies with international financial is available on the IMF’s website (www.imf.org). Costa Rica. centers; these jurisdictions have significant holdings of The CPIS is intended to complement the work of portfolio investments. Bermuda is the only such coun- the Bank for International Settlements on statistics on try to have participated in the first survey (see IMF the cross-border positions of banks. Between the CPIS Survey, February 7, 2000, page 41). and the BIS, there will be full coverage of banking and Participants in the 2001 CPIS are required to pro- securities markets in participating countries based on vide data on cross-border holdings of debt (both long common principles. term and short term) and equity securities, by the res- Robert Dippelsman idence of the issuer. Participants are also encouraged IMF Balance of Payments and External Debt Division I Participation in 2001 CPIS seminars First Seminar, January 9–11, 2001 Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Host: Belgian National Bank, Brussels Panama, Uruguay, Venezuela Chair: Guido Melis, Belgian National Bank Austria, Belgium, Cameroon, Canada, Denmark, Fourth Seminar, February 7–9, 2001 Finland, Germany, Iceland, Ireland, Mauritius, Netherlands, Host: Cayman Islands Monetary Authority, Grand Nigeria, Norway, South Africa, Sweden, Uganda, United Cayman Kingdom, United States, Zimbabwe Chair: Simon Quin, IMF Statistics Department Aruba, The Bahamas, Barbados, Bermuda, British Second Seminar, January 15–17, 2001 Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Host: Belgian National Bank, Brussels Jersey, Netherlands Antilles, Vanuatu Chair: Guido Melis, Belgian National Bank Bahrain, Bulgaria, Cyprus, Egypt, Estonia, France, Fifth Seminar, February 14–16, 2001 Greece, Hungary, Italy, Lebanon, Malta, Poland, Portugal, Host: Australian Bureau of Statistics Romania, Russia, Slovak Republic, Spain, Switzerland, Chair: Ivan King, Australian Bureau of Statistics Turkey, Ukraine, United Arab Emirates Speaker: William Griever, U.S. Federal Reserve Board Australia; Bangladesh; People’s Republic of China: Third Seminar, January 31–February 2, 2001 Mainland, Hong Kong SAR, and Macao SAR; Indonesia; Host: Central Bank of Costa Rica, San Jose Israel; Japan; Korea; Malaysia; New Zealand; Pakistan; Chair: Eduardo Rodriguez, Bank of Spain Philippines; Singapore; Thailand April 2, 2001 109 ©International Monetary Fund. Not for Redistribution.