International investment position is a statistical statement reflecting the value and composition of financial assets and financial liabilities between Latvia's residents and the rest of the world, on a specific date, as well as changes in the residual values in the respective time period. Changes in the residual values may occur as a result of transactions (balance of payments data), exchange rate changes, price changes, and other adjustments (mainly due to various reclassifications in the system of information provider, debt capitalisation, etc). International investment position includes direct investment, portfolio investment, financial derivatives, other investment, and reserve assets.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.