RAMALLAH, October 30, 2011 (WAFA) - The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) Sunday published the first ever preliminary results of the International Investment Position (IIP) for the Palestinian Territory in 2010, said a press release by PCBS.
The results indicated that Palestinian investments outside the Palestinian Territory are higher than foreign investments in the Palestinian Territory.
Primary results of the IIP (external assets – foreign liabilities) for the Palestinian Territory at the end of 2010 revealed that net IIP had amounted to about US$2084 million, meaning that the Palestinian economy, in its various sectors, had invested outside the Palestinian Territory by more than the investment amount in the Palestinian Territory from abroad.
The press release said the cash deposits of local banks in foreign banks and the foreign exchange in the Palestinian economy had contributed a major value in the external assets, representing 58% of their total value.
The total stocks of external assets for the Palestinian Territory (stocks of residents in the Palestinian Territory invested abroad) had amounted to US$5424 million. Foreign direct investment abroad contributed to 4%, portfolio investments abroad reached 15%, other foreign investments abroad reached 64% and reserve assets amounted to 17%, according to PCBS and PMA.
External investments of the banking sector contributed a major value in the external assets, represented 71% of their total value.
The total stocks of foreign liabilities at the Palestinian Territory (stocks of non-residents invested in the Palestinian Territory) amounted to US$3340 million; foreign direct investment in the Palestinian Territory contributed 41%, portfolio investments in the Palestinian Territory reached 19%, other investments in the Palestinian Territory amounted to 40% and reserve assets amounted to 17%, added the report.
Foreign investments in the banking sector in the Palestinian Territory had contributed a major value within foreign liabilities, represented by 33% of the total value of external assets.
The IIP is defined as an accounting sheet recording the investments stocks for residents of the Palestinian Territory (individuals, institutions and government) that are invested in the rest of the world under the name “assets,” on the one hand, and the investments stocks owned by residents outside the Palestinian Territory (individuals, institutions and governments) that are invested in the Palestinian Territory under the name “liabilities” on the other hand.
The balance of payments manual - fifth edition, issued by the International Fund in 1993, divides the assets and liabilities into direct investment (investment by 10% and more in non-resident capital), portfolio investment (investment less than 10% in non-resident capital as well as investment in bonds), and other investments (which are divided into stocks of trade credit, loans, currency and deposits and any other assets or liabilities), in addition to reserve assets, which are defined as stocks held by the monetary authority to address the imbalances in the balance of payments. Reserve assets are only included on the asset side.
R.Q./F.J.
