Equation 3 illustrates the relationship between the current account balance as a flow and the net international investment position as a stock. The current account balance in a particular year corresponds to the change in the net international investment position in that year, adjusted for other influencing variables. Or, put another way, the net international investment position consists of the accumulated current account balances over the period. The other influencing variables, besides the current account balance, which can affect the net international investment position include exchange rate movements as well as changes in domestic and foreign asset prices. An appreciation of the local currency usually reduces the net international investment position, irrespective of the current account balance, as foreign assets are mainly denominated in foreign currency, and foreign liabilities in local currency. Since such valuation effects now play a major role, the current account does not offer a complete picture of developments in the net international investment position. Switzerland’s current account After this quick refresher of the relevant interrelationships concerning the current account, let’s look at the development of the current account in Switzerland from a slightly more longterm perspective. Chart 1 shows the annual balances on the current account in Switzerland during the period 1960–2016 as a share of GDP. The current account has been in surplus since the 1980s. The 3 4  Prior to the financial crisis, Switzerland’s current account balance had long been dominated by net investment income. In statistics, deviations from this equation cannot be avoided.
Michael Held: Keynote remarks at Union of Arab Banks’ anticorruption conference Keynote remarks (delivered via video conference) by Mr Michael Held, Executive Vice President and General Counsel of the Federal Reserve Bank of New York, at the Union of Arab Banks' Conference on Anti-Bribery Corruption, the Sixth European Union Anti-Money Laundering Directive, and the Anti-Money Laundering Act of 2020, 3 February 2022. * * * As prepared for delivery It is a pleasure to be with you virtually for this important Conference. I am thrilled to be able to share a digital stage with my distinguished colleagues – Liz Rosenberg, the Assistant Secretary for Terrorist Financing and Financial Crimes at the U.S. Treasury Department, and Dr. Fahad Ibrahim Alshathri, the Deputy Governor for Supervision at the Saudi Central Bank. I also want to thank my friend Wissam Fattouh and the Union of Arab Banks for the invitation to be part of this timely event. Before I start my remarks, I want you to know that the comments are my own and may not necessarily represent the views of the Federal Reserve Bank of New York or the Federal Reserve System. Like my colleagues and our respective institutions, I have serious concerns about corruption, kleptocracy and international bribery schemes. The Federal Reserve System supports the U.S. government’s actions to limit those activities through prosecutions and sanctions.