The capital account balance represents financial transactions involving assets like real estate, stocks, bonds, or loans between a country and other nations. It measures changes in ownership of national assets.
Related terms
Foreign direct investment (FDI): Investment made by individuals or companies from one country into businesses located in another country.
Portfolio investment: Investments made by individuals or institutions in foreign financial assets such as stocks and bonds.
Official reserves: Assets held by central banks to support their countries' currencies' stability and fulfill international obligations.