Direct investments and foreign portfolio investments
The indicator reflects the volume of investments attracted. There are direct investments and foreign portfolio investments. In the first case, we are talking about capital investments that give investors a right of preference. In the second case, investors make profits using their own capital (dividends). The indicator shows a positive or negative trend in inflows into a country’s economy. In the first case, it is regarded as a positive factor for a currency. Conversely, if the inflow reduces, it is a negative factor for a common currency.