SDMX data structure definition for BPM6-based data BP Balance of PaymentsWorking Group Luxembourg, 2-3 April 2012

Outline Draft data structure definition (DSD) Overview of key dimensions Next steps

Data Structure Definition – DSD Objective Collection of various data flows by international organizations Define set of “dimensions” and Associated code lists DSD “Dimensions” based on core BOP and IIP methodological framework concepts BIS, ECB, Eurostat, IMF, and OECD are closely collaborating on the development of the DSD for BPM6-based data reporting in SDMX formats

Data Structure Definition – DSD DSD supports BOP and IIP IMF’s Coordinated Portfolio Investment and Direct Investment Surveys Extended Balance of Payments Services (EBOPS) International reserves template FDI statistics The DSD will support the codification of exceptional financing transactions (IMF) For detailed annual FDI statistics t he DSD will need few additional dimensions

5 5 Draft - Dimensions in the BPM6 DSD Dimension nameDescription of the dimension FrequencyTime series frequency (e.g. monthly) Reference areaReporting country code (e.g. Portugal) Adjustment indicatorAdjustments for the time series (e.g. seasonal adjustment) Flows and stocks indicatorFlow or stock variable indicator (e.g. positions) International Accounts ItemClassification related to the BPM6 standard components Accounting entryType of entry (e.g. credit/debit/balance) Counterpart or partner areaCountry of counterpart (often, the rest of the world) Reference sectorInstitutional sector in the reporting area (e.g. general government) Functional categoryBOP functional classification (e.g. reserve assets) Financial instrument classification Breakdown by financial instrument (e.g. debt securities) MaturityMaturity of financial instrument (e.g. short term) Counterpart sectorInstitutional sector of counterpart (e.g. all sectors) Currency of denominationCurrency of issuance for financial items or invoicing for goods and services (e.g. euro) ValuationType of valuation for financial instruments Series unit of measureUnit of measure used for reporting the time series (e.g. euro)

6 Flows and Stocks Indicator Defines whether time series is a transaction, position or other flow. Other flow includes revaluations and other adjustments. Description Transaction Flows Other Flows Other Changes in the volume of Assets/Liabilities Revaluations Exchange rate changes Other price changes Position (Stocks)

7 International Accounts Items Main building blocks of international accounts (about 120 items) Goods and services Primary income Secondary income Capital account Financial account (single item) – Fully defined using stocks and flows indicator, financial instrument, functional category, institutional sector, and maturity Description Current account Goods and services Goods General merchandise on a balance of payments basis (…) Financial account Net lending (+) / net borrowing (-) (balance from financial account) Net errors and omissions

8 Accounting Entry For the current and capital accounts: – Entry is a credit/debit or balance For position (IIP) and financial transactions; – Entry is an asset (or net increase in), a liability (or net increase in), or the net of assets minus liabilities (or net increase of assets minus liabilities). Accommodates further breakdown of assets and liabilities to report gross data. Description Credit Debit Balance (Credits minus Debits) Assets (Net Acquisition of) Liabilities (Net Incurrence of) Net (Financial Assets minus Liabilities)

9 Functional Category BPM6 functional category (financial account and investment income) Used with dimensions: 1.International Account Item Financial account and Selected investment income items 2.Financial instrument classification Includes a sub-classification of the direct investment function by type of direct investment relationship (e.g. fellow enterprises) and ultimate controlling residency Financial derivatives function defined as “Risk Transfer” function, to avoid confusion with the financial derivatives as a financial instrument. Not applicable to current and capital account (except investment income) Description All Reserve Assets Direct Investment direct investor in direct invesment direct investment enterprises in direct investor between fellow enterprises if ultimate controlling parent is resident if ultimate controlling parent is nonresident if ultimate controlling parent is unknown Portfolio Investment Risk Transfer [e.g., Financial Derivatives] Other Invesment Not Applicable

10 Financial Instrument Classification Financial instrument categories (e.g. equity, debt, other) of the financial account Provides breakdowns of equity to separately identify the reinvestment of earnings (in direct investment) Description All Equity and Investment Fund Shares Equity Listed shares Unlisted shares Other o/w Equity other than reinvestment of earnings Listed shares Unlisted shares Other Investment Fund Shares/units Money market fund (MMF) shares/units Non-MMF investment fund shares/units Debt instruments Debt instruments other than insurance, pension, and stadardised shemes (...)

11 Reference Sector Institutional sector details for BPM6, aligned with SNA 2008 Includes specific BPM6 sectoral hierarchy Description All Central Bank Deposit-Taking corporations, except Central Bank General Government Other sectors (BPM6) Other financial corporations Money Market Funds Non-MMF investment Funds Insurance Corporations Pension Funds Other Non-Financial Corporations, Households and NPISH Non-Financial Corporations Households and non-profit institutions serving households Households Non-profit institutions serving households

12 How does the model work? (1/3) For BOP series on: Good and Services / Income (excluding Investment Income) / Capital Account Dimension name Frequency Reference area Adjustment indicator Flows and stocks indicator International Accounts Item Accounting entry Counterpart or partner area Reference sector Functional category Financial instrument classification Maturity Counterpart sector Currency of denomination Valuation Series unit of measure Group A: Expected to be the same across most time series Quarterly (mostly) My country Not SA (mostly) Transactions Rest-of-the-world (mostly) All sectors (mostly) All currencies My currency Group B: Expected to vary for each time series A good, a service, an income or capital acc. Credit/debit/balance Group C: concept not applicable for the series Not applicable

13 How does the model work? (2/3) For BOP series on: Financial Accounts Transactions / Positions For BOP series on: Financial Accounts Transactions / Positions Dimension name Frequency Reference area Adjustment indicator Flows and stocks indicator International Accounts Item Accounting entry Counterpart or partner area Reference sector Functional category Financial instrument classification Maturity Counterpart sector Currency of denomination Valuation Series unit of measure Group A: Expected to be the same across most time series Quarterly (mostly) My country Not SA Financial account Rest-of-the-world (mostly) All sectors (mostly) All currencies (mostly) Market price (mostly) My currency Group B: Expected to vary for each time series A transaction or a position Assets/Liabilities/Net A sector A functional category A financial instrument A maturity Group C: concept not applicable for the series

14 How does the model work? (3/3) EBOPS: Annual data on ITS Dimension name Frequency Reference area Adjustment indicator Flows and stocks indicator International Accounts Item Accounting entry Counterpart or partner area Reference sector Functional category Financial instrument classification Maturity Counterpart sector Currency of denomination Valuation Series unit of measure Group A: Expected to be the same across most time series Annual My country Not SA Transactions All sectors All currencies My currency Group B: Expected to vary for each time series A relevant EBOPS item Credit/debit/balance A relevant partner country Group C: concept not applicable for the series Not applicable

15 Still under investigation Minor problems with BPM6 standard presentation of current and capital transfers Treatment of reinvested earnings What to do with BPM6 transactions related to a specific sub-sector (border, seasonal and other short term workers) Integrating detailed annual FDI statistics using an extended DSD. 15

16 The Model: Pros and Cons Flexible – Can be used to report most data flows on external sector statistics – The same dimensions and code lists are re-used: facilitates the mapping from production databases Complex – Provides extensive (structural) metadata – Meant for computer-to-computer exchanges – Visualization tools may need to be developed 16

17 Next steps March 2012 – Interaction with the SNA-2008 DSD group to align, as best as possible, dimensions and code lists between the two DSDs April 2012 – Make available a draft version of the BOP-DSD, dimensions, and code lists for comments by selected external sector statistics domain groups June 2012 – A Pilot-ready version of the DSD (content aspects are finalized) – Provided to selected countries (with guidance notes) – Fine-tuning of technical aspects (mapping process, data flows conventions, constraint mechanisms, and validation aspects) June 2013 – Final version of the DSD—content and technical aspects—is released 17