1. Bedri Zymeri International Transactions Reporting System Workshop Amman – Jordan April 7-9, 2014

2. 2 Why this workshop? Learn Reach to the “AHA” Smooth Refresh Share & help

3. Outlines  Legal base  Balance of payments & IIP Register  Main data sources – by type  The data used as a sources – by components

4. Legal base  Are the data collected on a voluntary or statutory basis?  This will affect response rates  Statutory surveys will have higher response rates  Are procedures in place to prevent disclosure of individual reporters’ data?  Access to individual data is restricted;  Aggregation rules are used  Amount of detail published  The office undertaking the survey may have to request approval from the companies to publish detailed product- level information, for example where there are only one or two major exporters for certain goods/services;  Data sharing and coordination among data-producing agencies are adequate

5.  Business Register - is a statistical register consisting of a list of enterprises (and / or other statistical units), with some basic information about each unit.  Reference: “Business Registers - RecommendationBusiness Registers - Recommendation ◦ Manual”., Eurostat, Luxembourg 2010.Manual  Maintaining and developing a balance of payments and IIP enterprise register The enterprise register form is used to record information about members (enterprises) of the population. The information is subsequently used to conduct balance of payments and IIP surveys. Balance of payments & IIP Register

6.  Appendix 8. Model Survey Forms Appendix 8. ◦ Form 1—Exploratory Survey Form 1 - undertaken to identify ….enterprises receiving (or making) payments from (or to) abroad. ◦ Form 2—Balance of Payments and IIP Enterprise Register Form Form 2 ◦ - undertaken to identify … information about members (enterprises) of the population, which – in turn – are used to compile balance of payments and IIP statistics. ◦ In part A - general information ◦ In part B - information on the enterprise group is entered (for example, Type of Unit, Sector, Publicly owned enterprise, Type of Enterprise - i.e. DIE or DI, Industry ◦ In part C - The size, The activities (goods, services, type of serv. etc.) ◦ In part D - data are recorded on the source used to identify this unit ◦ In part E - details of subsidiary companies and any DIE abroad ◦ In part F - major shareholders are identified. Balance of payments & IIP Register … continues

7. Conceptual Framework: Defining the type of data needed CS = OS + T + VC + OCVA T = CS – OS – OCVA.

8. Main Data Sources - by type DATA SOURCES FOR COMPILING BALANCE OF PAYMENTS AND IIP STATISTICS I. International transaction reporting System (ITRS) II. International Merchandise Trade Statistics (IMTS) III. Business Surveys or Enterprise Surveys (ES) IV. Monetary and Financial Statistics (MFS) V. Administrative Data Sources - Official Sources VI. Other Sources Not Included Elsewhere & Estimates

9. I. Main data sources – by type: ITRS  An ITRS is a data collection framework for ESS which involves reporting to the Central Bank, by:  - banks, as a rule, and  - enterprises, in many cases.  ITRS varies from country to country in terms of coverage and complexity  When developing ITRS reporting forms, it is important to:  Design reporting forms which are easy to complete  Prepare Reporting Instructions and publish online  Provide trainings for reporters and cooperate closely with them

10. 10 Main ITRS reporting Forms:  Form 3-1. ITRS – Payments and Receipts; Form 3-1.  Form 3-2. ITRS – Imports and Exports Form 3-2.  Form 3-3. ITRS – Enterprises; Form 3-3.  Form 3-4. ITRS – Banks; Form 3-4  Form 3-5. ITRS – Banks‘ Records of Transactions; Form 3-5  Form 4— ITRS—Enterprises Form 4  Form 5—ITRS—Banks Form 5  ITRS Form 5A—Banks  ITRS Form 5B—Bank's Record of Transactions I. Main data sources – by type: ITRS … continues More about ITRS will be covered in other lectures

11.  Prerequisites for the Conduct of Enterprise Surveys in International Accounts:  Statistical legislation  Statistical Frame: Sources for BOP Register.  Clearly Defined Objectives  Collection Strategy: Census or Sample  Questionnaire Design (simple as possible) II. Main data sources – type: Survey

12.  Population benchmarks and weights used in the estimation process are reviewed and updated periodically.  Survey questionnaires are constructed according to sound design principles.  Survey instruments are designed for efficient data capturing/processing.  Benchmark collections are conducted with sufficient frequency, to ensure that the survey methodology is effective. II. Main data sources – type: Survey

13. Main Survey Reporting Forms presented on draft of the BPM6 Compilation Guide:  Form 4— Trade in Goods and Trade Finance, and Import of Repairs Services  Form 5— Goods for Merchanting  Form 6— International Trade in Services (not covered by forms 7-12)  Form 7— Manufacturing Services  Form 8— Resident Transport Operators II. Main data sources – type: Survey … continues

14.  Form 9— Transactions with Nonresident Transport Operators  Form 10— International Travel  Form 11— Construction  Form 12— International Insurance Services  Form 13— International Pension Services  Form 14— Foreign Embassies and International Institutions II. Main data sources – type: Survey … continues

15.  Form 15— Private Aid and Charitable Organizations  Form 17— Financial Claims on and Liabilities to Nonresidents  Form 18— Foreign Direct Investment  Form 19— International Securities  Form 20— Holdings of and Transactions in Financial Derivatives Contracts with Nonresidents II. Main data sources – type: Survey … continues

16.  Form 21—Travel: Returning Residents  Form 22—Travel: Departing Nonresidents  Form 23—International Transactions and Positions of Households II. Main data sources – type: Survey … continues For more info, visit: https://www.imf.org/external/pubs/ft/bop/2007/bop6comp.htm

17. Sectoral Survey Analytical presentation with key aggregates: broad money, net foreign assets, net claims on central government,… Sectoral Balance Sheet Assets and Liabilities as in SNA + Details by creditor/debtor sector and currency Source Data Sectoral Charts of Accounts (central bank, other banks, finance comp., …) + Reporting Requirements III. Main data sources –type: Monetary data

18.  Summary Lines from SRF for Other Depository Corporations: III. Main data sources –type: Monetary data … continues

19.  Source data available from administrative records to compile BOP and IIP need to be adequate;  Periodic meetings needs to be held with government and financial institutions, as well as with the business community to identify new needs;  International standards, guidelines, and best practices need to be monitored for changes that need to be taken into account in the balance of payments and IIP compilation system. IV. Main data sources – type: Administrative data

20.  Data that supplement other sources:  Financial statements published by reporters  Partner countries  Embassies, consulates, military installations, aid missions, information agencies, and other government institutions located abroad  Estimates V. Main data sources – type: Other Sources Not Included Elsewhere

21. 21 The data used as a sources – by components  direct investment;  portfolio investment;  financial derivatives;  other investment; and  reserve assets.  goods;  services;  primary income; and  secondary income.  capital account Standard components of balance of payments and IIP statements :

22. 22 Goods component: The data used as a sources  The goods component of the balance of payments current account covers (with a few exceptions) moveable goods for which changes of ownership (between residents and nonresidents) occur.  Goods standard components as presented in Appendix 9 of BPM6:

23. 23 Goods component: The data used as a sources In practice, the data used as source for General merchandise are:  Customs (primary data source)  ITRS  Administrative records (including data from TAX System)  Survey of traders (businesses)  Combinations Adjustments may be needed to some data for:  Coverage, timing, valuation and classification

24.  Form 6 — Trade in Goods and Trade Finance, and Form 6 Import of Repairs Services  Part A & B: collect data on exports and imports  Part C & D: collect details of processing of goods  Part E & F: covers repairs to goods  Part G : is concerned with merchanting transactions  Part H & I: measure significant differences between date of sale and date of shipment.  Part J & K : are concerned with the financing of trade. … continues Goods component: The data used as a sources

25. 25  For services component the Balance of Payments Unit usually organizes a mixture of data sources.  An ITRS can be used for the compilation of trade in services statistics and is likely to have a good coverage across the full range of services  Surveys  The system is made up of two main subsystems:  a full survey of the major enterprises;  a set of specific surveys for the other enterprises. Services – main components based on BPM6

26. 26 Services – main components based on BPM6

27. 27 Services – Template Forms from Compilation Guide Forms Number and Title Scope and PurposeOther Comments 6. International Trade in Services The form collects data on services not covered by forms 7-12 for compilation of various services items. Separate forms could be created to collect information on specific aspects of services (for example, provision of financial services). 7. Manufacturing Services This form contains a sample questionnaire on manufacturing services on physical inputs owned by others. 8. Resident Transport Operators The form collects data on resident transport operator earnings and expenses for compilation of transportation and certain goods items. The form could be tailored for different modes of transport. Several more specialized forms could be created from the model form.

28. 28 Forms Number and Title Scope and PurposeOther Comments 8. Resident Transport Operators The form collects data on resident transport operator earnings and expenses for compilation of transportation and certain goods items. The form could be tailored for different modes of transport. Several more specialized forms could be created from the model form. 9. Transactions with Non- Resident Transport Operators The form collects, from residents, data on non- resident transport operators‘ earnings and expenses for compilation of transportation and certain goods items. The form could be tailored for different modes of transport. Several more specialized forms could be created from the model form. 10. International Travel The form collects data on the means used to pay for travel and related services for compilation of the travel item. Several specialized forms could be created from this form. Services – Template Forms from Compilation Guide

29. 29 Forms Number and Title Scope and PurposeOther Comments 11. ConstructionThis form collects information on construction abroad, construction in the compiling economy, as well as data on both short-term and long-term construction projects. 12. International Insurance Services The form collects information on the insurance and re-insurance activities of resident enterprises. The data are used in the compilation of services, current and capital transfers and the IIP. The form illustrates methods for collecting various data specifically associated with the insurance industry. 13. International Pension Services The form collects information on the pension activities of resident pension funds. The data are used in the compilation of services, current transfers, and the IIP. The form illustrates methods for collecting various data specifically associated with the operations of pension funds. Services – Template Forms from Compilation Guide

30. 30 Forms Number and Title Scope and PurposeOther Comments 14. Foreign Embassies and International Institutions The form collects data on wages and salaries paid to local workers, other embassy expenditures, foreign aid, and official finance. These data are used to compile compensation of employee, government services, current transfer, financial account, IIP, and investment income items. While the reporters to this form, who will be non- residents, cannot be compelled to complete it, a number of countries have successfully collected information by using forms similar to the model form. 15. Private Aid and Charitable Organizations The form collects data on the income, compensation of employees and current and capital transfers of private aid and other charitable organizations. Primary Income – Template Forms from Compilation Guide

31. 31 Forms Number and Title Scope and PurposeOther Comments 15. Private Aid and Charitable Organizations The form collects data on the income, compensation of employees and current and capital transfers of private aid and other charitable organizations. 16. Current Transfers Grants and Technical Assistance This form collects information on current transfers, grants and technical assistance. Part A of the form seeks information on transfers in cash and in kind received by the government and the private sector, including nongovernment organizations (NGO). Part B of the form pertains to technical assistance of project work/staffed missions received by the economy. The information can be used for the compilation of current transfers in the secondary income account and capital transfers in the capital account. Secondary Income – Template Forms from Compilation Guide

32. 32 Forms Number and Title Scope and PurposeOther Comments 17. Financial Claims and Liabilities to Nonresidents The form collects data on financial flows, stock positions, reconciliation items, income, certain financial services, and withholding taxes. The data are used to compile financial account, IIP, investment income, financial services and current transfer items. In practice, several forms may be created from this form, or more simplified versions of the form could be developed. 18. Foreign Direct Investment The form collects data specifically on foreign direct investment items of form 16. This form is a narrower version of form 17, collecting data specifically on foreign International Securities This form collects data on financial transactions, stock positions, income, financial services, and withholding taxes associated with international securities from financial intermediaries. The form can be used in either an enterprise survey or an ITRS. Financial Account – Template Forms from Compilation Guide

33. 33 Reporting agents  Central Bank  General government  Banks  Financial sector other than Banks  Non-financial sector  NSO

34. 34 Availability of data and Timelines  Availability ◦ Goods data: usually available on a monthly basis ◦ Surveys: usually in annual or quarterly basis ◦ Monetary and financial data: usually are available in monthly bases  Timelines ◦ Monthly reports 15 working days after the month ◦ Quarterly reports one month after the quarter

35. 35 Compilation Methods  Systematic development of financial statistics ◦ Available data varies among countries ◦ Limited data sources ◦ Flows only or Stocks only  Estimation techniques of missing data  Editing, residual calculations, and discrepancies  Net errors and omissions (statistical discrepancy)

36. 36 THANK YOU! QUESTIONS!