Balance of Payments Manual, Sixth Edition

Front Matter

Front Matter

International Monetary Fund
Published Date:
January 2010
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    © 2009 International Monetary Fund

    Production: IMF Multimedia Services Division

    Typesetting: Alicia Etchebarne-Bourdin

    Cataloging-in-Publication Data

    Balance of payments and international investment position manual.—Washington, D.C.: International Monetary Fund, 2009.

    • p.; cm.

    • 6th ed.

    • Previously published as: Balance of payments manual.

    • ISBN 9781589068124

    1. Balance of payments—Statistics—Handbooks, manuals, etc. 2. Investments—Statistics—Handbooks, manuals, etc. I. Title. II. Title: Balance of payments manual. III. International Monetary Fund.

    HG3881.5.I58 I55 2009

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    Table of Contents


    The International Monetary Fund since its inception has had a compelling interest in developing and promulgating guidelines for the compilation of consistent, sound, and timely balance of payments statistics. This work underpins the IMF’s other responsibilities, including conducting surveillance of countries’ economic policies and providing financial assistance that enables countries to overcome short-term balance of payments difficulties. Such guidelines, which have evolved to meet changing circumstances, have been embodied in successive editions of the Balance of Payments Manual (the Manual) since the first edition was published in 1948.

    I am pleased to introduce the sixth edition of the Manual, which addresses the many important developments that have occurred in the international economy since the fifth edition was released. The fifth edition of the Manual, released in 1993, for the first time addressed the important area of international investment position statistics. The sixth edition builds on the growing interest in examining vulnerabilities using balance sheet data, as reflected in the addition of international investment position to the title, and extensive elaboration of balance sheet components. The Manual also takes into account developments in globalization, for example, currency unions, cross-border production processes, complex international company structures, and issues associated with international labor mobility, such as remittances. In addition, it deals with developments in financial markets by including updated treatments and elaborations on a range of issues, such as securitization and special purpose entities.

    Because of the important relationship between external and domestic economic developments, the Manual was revised in parallel with the update of the System of National Accounts 2008. To support consistency and interlinkages among different macroeconomic statistics, this edition of the Manual deepens the harmonization with the System of National Accounts and the IMF’s manuals on government finance and on monetary and financial statistics.

    The revised Manual has been prepared by the IMF’s Statistics Department in close consultation with the IMF Committee on Balance of Payments Statistics, which includes experts from a range of member countries as well as international and regional organizations. In addition, input was received from specialized expert groups, and from member countries and international organizations during regional seminars and public comment periods on successive drafts of the Manual. In total, representatives from virtually all IMF member countries participated in one or more of these initiatives. The process underlying the revision of the Manual demonstrates the spirit of international collaboration and cooperation, and I would like to commend all of the national and international experts involved for their invaluable assistance.

    I would like to recommend the Manual to compilers and users. I urge member countries to adopt the guidelines of the sixth edition as their basis for compiling balance of payments and international investment position statistics and for reporting this information to the IMF.

    Dominique Strauss-Kahn

    Managing Director

    International Monetary Fund



    1. The release of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) is the culmination of several years of work by the IMF Statistics Department and the IMF Committee on Balance of Payments Statistics (the Committee) in collaboration with compilers and other interested parties worldwide. It updates the fifth edition published in 1993, providing guidance to IMF member countries on the compilation of balance of payments and international investment position data.

    2. When the Committee decided in 2001 to initiate an update of the manual, it considered that, while the overall framework of the fifth edition (BPM5) remained adequate, it needed to incorporate the numerous elaborations, clarifications, and improvements and updates in methodology that had been identified since 1993, and to strengthen the theoretical foundations and linkages to other macroeconomic statistics. The production of BPM6 was conducted in parallel with the update of the OECD Benchmark Definition of Foreign Direct Investment, and the System of National Accounts (SNA) to maintain and enhance consistency among these manuals.

    Consultative process

    3. The production of BPM6 was characterized by extensive consultation. In addition to the Committee’s oversight, there was significant outreach to the wider community.

    Annotated outline

    4. In April 2004, the IMF released an Annotated Outline for the update of the manual. It included proposals and options for the style and content of the revised manual. Questions were posed on specific issues to gauge views. The outline was circulated to central banks and statistical agencies, and was posted on the IMF website. Input was invited from compilers and other interested parties worldwide. Altogether, 33 countries provided written comments.

    Technical expert groups

    5. The Committee established four technical expert groups, with membership from member countries and international agencies, to undertake detailed consideration of issues and make recommendations on currency unions (Currency Union Technical Expert Group, or CUTEG), direct investment (Direct Investment Technical Expert Group, or DITEG), reserves (Reserve Assets Technical Expert Group, or RESTEG), and other issues (Balance of Payments Technical Expert Group, or BOPTEG). DITEG was chaired jointly with the OECD and had common membership and meetings with the OECD’s Benchmark Advisory Group (BAG) to bring about consistent treatments. The issue papers and outcome papers were posted on the IMF’s website. Many of the issues discussed also were relevant for the update of the SNA, thus ensuring coordination with the Advisory Expert Group on National Accounts (AEG), which had been created by the InterSecretariat Working Group on National Accounts as an advisory and consultative body for the update of the SNA.

    6. In addition, other specialized groups provided input on such topics as trade in services, merchandise trade, tourism, remittances, debt statistics, and fiscal statistics. International organizations participated in all stages of the process directly and as members of specialized groups.

    Worldwide review

    7. Draft versions of the Manual were published on the IMF website in March 2007 and March 2008. In each case, worldwide comment was invited within a deadline of three months. About 60 sets of comments were received on the 2007 version, and 20 on the 2008 version. In addition, other draft versions of selected chapters and of the whole document were circulated to Committee members, other departments of the IMF, and other interested parties.

    8. Furthermore, an expert review of the draft version was undertaken in January 2008 by Mahinder Gill, a retired IMF staff member and former Assistant Director, who supervised the drafting of BPM5, to identify any inconsistencies or omissions in the document, and to check the consistency with the SNA.

    9. During 2008, a series of nine regional outreach seminars was conducted on the Manual to explain the proposed changes and encourage comments on the content and drafting. Representatives from 173 IMF member economies, along with a number of international agencies, participated in these seminars and provided many useful suggestions.

    10. Taking account of the written comments on the March 2008 draft, inputs from the regional seminars, and the finalization of Volume 1 of the 2008 SNA, a new draft version was circulated to Committee members in July 2008. Following a further round of comments by Committee members and internal IMF review, the BPM6 was adopted unanimously by the Committee in November 2008.

    Major changes introduced

    11. The overall framework of the fifth edition is unchanged and BPM6 has a high degree of continuity with BPM5. Some of the most significant changes from the last edition are as follows:

    • Revised treatment of goods for processing and goods under merchanting;

    • Changes in the measurement of financial services, including Financial Intermediation Services Indirectly Measured (FISIM), spreads on the purchase and sale of securities, and the measurement of insurance and pension services;

    • Elaboration of direct investment (consistent with the OECD Benchmark Definition of Foreign Direct Investment, notably the recasting in terms of control and influence, treatment of chains of investment and fellow enterprises, and presentation on a gross asset and liability basis as well as according to the directional principle);

    • The introduction of the concepts of reserve-related liabilities, standardized guarantees, and unallocated gold accounts;

    • New concepts for the measurement of international remittances;

    • Increased focus on balance sheets and balance sheet vulnerabilities (including a chapter on flows other than those arising from balance of payments transactions);

    • Strengthened concordance with the SNA (such as the full articulation of the SNA/Monetary and Financial Statistics Manual (MFSM) financial instrument classification and the use of the same terminology such as primary and secondary income); and

    • Extensive additions to the Manual, which is double the length of the original because of added detail and explanation, and new appendixes (such as currency unions, multinational enterprises, and remittances).

    12. A detailed list of changes from BPM5 is provided in Appendix 8 of the Manual.


    IMF staff

    13. The BPM6 was produced under the direction of three Directors of the Statistics Department (STA): Carol Carson (2001–04), Robert W. Edwards (2004–08), and Adelheid Burgi-Schmelz (2008–). Lucie Laliberté was the responsible Deputy Director (2004–).

    14. In the Balance of Payments Divisions, the editor of the BPM6 throughout the project was Robert Dippelsman, Senior Economist, who provided the essential expert continuity. Robert Dippelsman and Manik Shrestha, a Senior Economist and coeditor, 2002–06, were primary drafters of both the Annotated Outline and BPM6. The project was supervised by Neil Patterson, Assistant Director (2001–06); Robert Heath, Division Chief (2003–08); and Ralph Kozlow, Division Chief (2007–).

    15. Many staff of the Balance of Payments Divisions contributed to the project. John Joisce, Senior Economist (2001–), was closely involved in various aspects of the project throughout. The following Senior Economist staff drafted Appendixes: Andrew Kitili (Appendixes 1 and 2), Rene Fiévet (Appendix 3), and Margaret Fitzgibbon (Appendix 4). Jens Reinke, Economist, drafted Appendix 5. Pedro Rodriguez, an Economist in the IMF’s Strategy, Policy, and Review Department (SPR), contributed material for Chapter 14. In addition to staff mentioned above, the following members of the Balance of Payments Divisions conducted the nine regional seminars in 2008: He Qi and Emmanuel Kumah (Deputy Division Chiefs); and Paul Austin, Thomas Alexander, Antonio Galicia, John Motala, and Tamara Razin (Senior Economists). Within the staff of the Balance of Payments Divisions, Simon Quin (Deputy Division Chief); Colleen Cardillo, Jean Galand, Gillmore Hoefdraad, Natalia Ivanik, Eduardo Valdivia-Velarde, and Mark van Wersch (Senior Economists); and Sergei Dodzin, an Economist in SPR, made notable contributions to improving the overall quality of the BPM6.

    16. Carmen Diaz-Zelaya and Marlene Pollard prepared the BPM6 drafts for publication. In addition to these staff, Esther George, Elva Harris, and Patricia Poggi supported the preparation of papers for presentation at the Committee or technical expert group meetings.

    The Committee

    17. The BPM6 was prepared under the auspices of the Committee. The BPM6 benefited immensely from the expert advice of Committee members throughout the process; their contribution was crucial to the success of the project. The Statistics Department wishes to acknowledge, with thanks, the members and the representatives of international organizations on the Committee during 2001–08:

    AustraliaZia Abbasi

    Michael Davies

    Bronwyn Driscoll

    Ivan King

    Russian Federation

    Saudi Arabia
    Jung-Ho Chung

    Sergei Shcherbakov

    Lidia Troshina

    Abdulrahman Al-Hamidy
    BelgiumGuido MelisSulieman Al-Kholifey
    CanadaArt RidgewaySouth AfricaErnest van der Merwe
    ChileTeresa CornejoStefaans Walters
    ChinaHan HongmeiSpainEduardo Rodriguez-Tenés
    China, Hong Kong SARLily Ou-Yang FongUgandaMichael Atingi-Ego
    United KingdomStuart Brown
    FrancePhilippe Mesny1United StatesRalph Kozlow
    GermanyAlmut StegerObie Whichard
    HungaryAntal Gyulavári
    IndiaMichael Debabrata Patra
    ItalyAntonello Biagioli
    JapanSatoru Hagino

    Joji Ishikawa

    Teruhide Kanada

    Makoto Kato

    Hideki Konno

    Takehiro Nobumori

    Toru Oshita

    Takuya Sawafuji

    Hidetoshi Takeda

    Takashi Yoshimura
    Representatives of International Organizations
    Bank for International Settlements (BIS)Rainer WideraOrganization for Economic Cooperation and DevelopmentAyse Bertrand

    William Cave
    European Central Bank (ECB)Werner Bier

    Jean-Marc Israël

    Carlos Sanchez-Muñoz

    Pierre Sola
    United Nations Conference on Trade and DevelopmentMasataka Fujita
    EurostatElena Caprioli

    Maria-Helena Figueira

    Jean-Claude Roman

    Mark van Wersch
    United Nations Statistics DivisionIvo C. Havinga

    Technical expert groups

    18. As noted above, the Committee created four technical expert groups to advise it on specific issues. The Statistics Department is most grateful for the expert advice provided by the members of these technical expert groups.

    Balance of Payments Technical Expert Group (BOPTEG)

    Chair: Neil Patterson

    Secretariat: Robert Dippelsman and Manik Shrestha

    Zia Abbasi (Australia); Jamal Al-Masri (Jordan); Christopher Bach (United States); Stuart Brown (United Kingdom); Khady Beye Camara (Banque Centrale des États de l’Afrique de l’Ouest, BCEAO); Raymond Chaudron (the Netherlands); Teresa Cornejo (Chile); Michael Davies (Australia); Satoru Hagino (Japan); Han Hongmei (China); Januus Kroon (Estonia); Philippe Mesny (BIS); Pawel Michalik (Poland); Frank Oudekken (the Netherlands); Carlos Sánchez-Muñoz (ECB); Ipumbu Shiimi (Namibia); Almut Steger (Germany); Hidetoshi Takeda (Japan); Nuannute Thana-anekcharoen (Thailand); Charlie Thomas (United States); Mark van Wersch (Eurostat); Chris Wright (United Kingdom).

    Direct Investment Technical Expert Group (DITEG)

    Co-Chairs: Neil Patterson and Ralph Kozlow2

    Secretariat: John Joisce and Marie Montanjees (IMF), and Ayse Bertrand and Yesim Sisik (OECD)

    Olga Aarsman (the Netherlands); Zia Abbasi (Australia); Roger de Boeck (Belgium); Lars Forss (Sweden); Christian Lajule (Canada); Mondher Laroui (Tunisia); Jeffrey Lowe (United States); Peter Neudorfer (ECB); George Ng (Hong Kong SAR); Frank Ouddeken (the Netherlands); Paolo Passerini (Eurostat); Art Ridgeway (Canada); Carlos Sánchez-Muñoz (ECB); Bruno Terrien (France); Lidia Troshina (Russian Federation); Mark van Wersch (Eurostat); Carlos Varela (Colombia); Martin Vaughan (United Kingdom); Maiko Wada (Japan); Graeme Walker (United Kingdom); Stefaans Walters (South Africa); and Obie Whichard (United States).

    Currency Unions Technical Expert Group (CUTEG)

    Chair: Robert Heath

    Secretariat: Rene Fiévet and Samuele Rosa (IMF)

    Gebreen Al-Gebreen (Saudi Arabia); Olga Antropova (Belarus); Khady Beye Camara (BCEAO); Miriam Blanchard (Eastern Caribbean Central Bank, ECCB); Luca Buldorini (Italy); Remigio Echeverria (ECB); Nazaire Fotso Ndefo (Banque des États de l’Afrique Centrale, BEAC); Jean Galand (ECB); Rudolf Olsovsky (Czech Republic); Jean-Marc Israel (ECB);3 and Mark van Wersch (Eurostat).

    Reserve Assets Technical Expert Group (RESTEG)

    Chair: Robert Heath

    Secretariat: Antonio Galicia and Gillmore Hoefdraad

    Hamed Abu El Magd (Egypt); Koichiro Aritoshi (Japan); Kevin Chow (Hong Kong SAR); Allison Curtiss (United Kingdom); Mihály Durucskó (Hungary); Saher El-Sherbini (Egypt); Kelvin Fan (Hong Kong SAR); Fernando Augusto Ferreira Lemos (Brazil); Reiko Gonokami (Japan); Hideo Hashimoto (Japan); Yang Hoseok (Korea); Mohammed Abdulla A. Karim (Bahrain); Philippe Mesny (BIS); Jean Michel Monayong Nkoumou (BEAC); Linda Motsumi (South Africa); Christian Mulder (Monetary and Capital Markets Department, IMF); Joseph Ng (Singapore); Ng Yi Ping (Singapore); Carmen Picón Aguilar (ECB); Stephen Sabine (United Kingdom); Julio Santaella (Mexico); Dai Sato (Japan); Ursula Schipper (Germany); Jay Surti (Monetary and Capital Markets Department, IMF); Charlie Thomas (United States); Lidia Troshina (Russian Federation); and Yuji Yamashita (Japan).

    Preparation of issues papers

    Issues papers for four technical expert groups were prepared by Olga Antropova, Ayse Bertrand, Stuart Brown, Richard Button, Robert Dippelsman, Remigio Echeverria, René Fiévet, Jean Galand, Antonio Galicia, Gillmore Hoefdraad, Ned G. Howenstine, Maurizio Iannaccone, John Joisce, Andreas Karapappas, Andrew Kitili, Stephan Klinkum, Ralph Kozlow, Marie Montanjees, Frank Ouddeken, Paolo Passerini, Valeria Pellegrini, Art Ridgeway, Samuele Rosa, Carlos Sánchez-Muñoz, Manik Shrestha, Pierre Sola, Hidetoshi Takeda, Bruno Terrien, Lidia Troshina, Philip Turnbull, Martin Udy, Mark van Wersch, and Chris Wright.

    Issues papers also were prepared by the following institutions: International and Financial Accounts Branch, Australian Bureau of Statistics; National Bank of Belgium; Statistics Canada; European Central Bank; Census and Statistics Department, Hong Kong, SAR; Bank of Japan; Service Central de la Statistique et des Etudes Economiques, Luxembourg; Balance of Payments and Financial Accounts Department, De Nederlandsche Bank; Directorate for Financial and Enterprise Affairs, OECD; and the U.K. Office for National Statistics.

    Other acknowledgments

    19. The BPM6 also benefited from comments by national compilers, international agencies, and interested individuals from the private sector arising from the public comment periods on the March 2007 and March 2008 drafts. The IMF Statistics Department acknowledges, with gratitude, their contributions.

    20. The IMF Statistics Department is grateful for the support and cooperation of the editor of the SNA, Anne Harrison.

    Adelheid Burgi-Schmelz

    Director, Statistics Department

    International Monetary Fund


    From 2004 onward, Philippe Mesny represented the Bank for International Settlements.

    DITEG was a joint task force with the OECD’s Benchmark Advisory Group (BAG). Ralph Kozlow was chair of the Workshop of International Investment Statistics (the body overseeing the BAG) while Associate Director for International Economics at the Bureau of Economic Analysis, U.S. Department of Commerce, before joining the IMF’s Statistics Department.

    Cochaired the second meeting of CUTEG held in Frankfurt.

    List of Abbreviations


    Advisory Expert Group on National Accounts


    Activities of Multinational Enterprises


    Benchmark Advisory Group


    Banque Centrale des États de l’Afrique de l’Ouest


    Banque des États de l’Afrique Centrale


    Bank for International Settlements


    Build, own, operate, transfer


    Balance of Payments Statistics Yearbook


    Balance of Payments Technical Expert Group


    Balance of Payments Manual, fifth edition (1993)


    Balance of Payments and International Investment Position Manual, sixth edition (2008)


    Coordinated Direct Investment Survey


    Cost, insurance, and freight


    Commercial Interest Reference Rate


    Common monetary area

    The Committee

    IMF Committee on Balance of Payments Statistics


    Central Product Classification


    Coordinated Portfolio Investment Survey




    Currency union


    Currency union central bank


    Currency union national central bank


    Currency Unions Technical Expert Group


    Direct investment


    Direct Investment Technical Expert Group




    Extended Balance of Payments Services (Classification)


    European Central Bank


    Eastern Caribbean Central Bank


    Economic union


    Employee stock option


    Foreign AffiliaTes Statistics


    Free carrier


    Financial derivatives (other than reserves) and employee stock options


    Framework for Direct Investment Relationships


    Financial intermediation services indirectly measured


    Free on board


    General Arrangements to Borrow


    General Agreement on Trade in Services


    Gross domestic product


    Government Finance Statistics Manual


    Gross national disposable income


    Gross national income


    Heavily indebted poor country


    Harmonized Commodity Description and Coding System


    Insurance corporations


    Insurance corporations and pension funds


    International investment position


    International Monetary Fund


    International merchandise trade statistics


    International Standard Industrial Classification of All Economic Activities


    InterSecretariat Working Group on National Accounts


    London interbank offered rate


    Monetary and Financial Statistics Manual


    Money market fund


    Manual on Statistics of International Trade in Services


    not applicable


    New Arrangements to Borrow


    not included elsewhere


    Nongovernmental organization


    Nonprofit institution serving households


    Organization for Economic Cooperation and Development


    Other financial corporations


    Other investment


    Pension funds


    Portfolio investment


    Poverty Reduction and Growth Facility


    Reserve assets


    Reserve Assets Technical Expert Group


    Reserve-related liabilities


    Special Drawing Right


    System of National Accounts


    Special purpose entity


    Sovereign wealth fund

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