|
TIC Net Long-Term Transactions
Definition: Treasury International Capital (TIC) Net Long-Term Transactions is a measure of the monthly change in net purchases of long-term securities, specifically bonds with an original expiry of more than one year. The net figure is calculated by subtracting domestic purchases from the amount of foreign (outside of the US) purchases. e.g. Foreign purchases of US $100 billion - (minus) Domestic purchases of US$ 25 billion = net US$ 75 billion.
Additional Info: A higher reading has a positive impact on the value of the USD because foreigners have to exchange their domestic currency into Dollars to make their purchases thus stimulating demand for the US Dollar. Related Terms:
Did you find this definition helpful? Webmasters can add it to their site completely free! Just copy and paste the code below into the HTML code of the page where you would like 'TIC Net Long-Term Transactions' to appear. It will be displayed in the form of a blue underlined link.
|