Japan's Foreign Assets and Liabilities: Implications for the External Accounts

The new millennium has witnessed a rapid expansion of external balance sheets and significant changes in the capital, currency and sectoral compositions of foreign assets and liabilities of emerging economies. These have created new channels of transmission of global financial shocks and amplified the susceptibility of the value of their outstanding stocks of gross foreign assets and liabilities to global financial conditions, leading to sizeable wealth transfers between emerging and advanced economies. They have also resulted in significant income transfers in view of negative yield differentials between their gross external assets and liabilities. Altogether, such transfers to advanced economies are estimated to have reached 2.3 per cent of the combined GDP of the G20 emerging economies per annum during 2000–2016.

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Modeling the Supply of Foreign Assets and the Current Account

The Exchange Rate in a Behavioral Finance Framework ◽

10.2307/j.ctv346pzr.9 ◽

2018 ◽

pp. 103-116

Keyword(s):

Current Account ◽

The Current Account ◽

Foreign Assets

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Virtual currency in sanctioned jurisdictions: stepping outside of SWIFT

Journal of Investment Compliance ◽

10.1108/joic-04-2019-0019 ◽

2019 ◽

Vol 20 (2) ◽

pp. 39-44 ◽

Cited By ~ 1

Author(s):

Katherine Kirkpatrick ◽

Christine Savage ◽

Russell Johnston ◽

Matthew Hanson

Keyword(s):

Best Practices ◽

Design Methodology ◽

Virtual Currency ◽

Content Type ◽

The Us ◽

Expert Analysis ◽

Practical Implications ◽

Foreign Assets

Purpose To understand and analyze sanctions evasion and enforcement via virtual currencies. Design/methodology/approach Discusses various jurisdictions’ attempts to further the use of virtual currency to facilitate and maximize access to international funds; analyzes the aspects that make virtual currency uniquely suited to evade sanctions; suggests best practices for industry participants to be sure to account for the differences in crypto asset structure and related risks. Findings The US Treasury Department’s Office of Foreign Assets Control (OFAC) has explicitly stated that despite virtual currency’s anonymity, industry participants are still responsible for policing and enforcing client compliance. Although sanctioned jurisdictions are thinking creatively about ways around SWIFT, the use of virtual currency to skirt sanctions presents certain challenges. Practical implications Virtual currency industry participants should understand OFAC’s specific guidance regarding compliance obligations in the cryptocurrency space, and should implement best practices and conservative measures to avoid unknowingly running afoul of sanctions laws. Originality/value Expert analysis and guidance from experienced investigations and sanctions lawyers.

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