Track US TIC Long-Term Purchases to gauge foreign investment trends and currency impacts.
There is a direct connection between the demand for domestic securities and the demand for domestic currency, as foreign investors need to acquire the local currency to buy securities from the country. For instance, if foreign investors purchase $100 billion in U.S. stocks and bonds while U.S. investors buy $30 billion in foreign securities, the resulting net figure would be $70.0 billion.
What it Measures
This metric reflects the difference in total value between long-term foreign securities acquired by U.S. investors and long-term U.S. securities purchased by foreign investors during the specified timeframe.
Usual Effect
If the 'Actual' figure exceeds the 'Forecast', it is generally favorable for the currency.
Source & Frequency
US Department of the Treasury (latest release) - https://home.treasury.gov/ • Data is published monthly, approximately 45 days following the close of the month.
How Data is Derived
N/A
Also Known As
Net Long-term Securities Transactions
Acronym
Treasury International Capital (TIC)