Financial Account

The financial account records the net acquisition and disposal of financial assets and liabilities with non-residents. Transactions recorded in Canada’s balance of international payments’ financial account are presented through four functional classes: direct investment, portfolio investment, other investment, and reserve assets. These investments belong either to Canadian residents (Canadian assets) or non-residents (Canadian liabilities). International standards require that a fifth functional class be articulated in the financial account, to show transactions in financial derivatives. Within the Canadian balance of international payments, transactions in financial derivatives are partially covered and included in the other investment category.