US Firms Holding $2.5 Trillion Overseas

The amount of cash held overseas by U.S. firms has risen to $2.5 trillion, according to new research by independent advisory firm Capital Economics, which suggests it’s very unlikely to be ever repatriated.

“This vast pile of foreign cash could provide a substantial boost to GDP (gross domestic product) if it was ever brought home. But the chances of this happening under the current tax system are very low,” Andrew Hunter, a U.S. economist at the firm, said in a new note on Monday.

Two years ago, the company estimated that the stock of earnings held abroad by U.S. corporations had increased six-fold over the previous decade, to a total of $2.1 trillion. It now states that it had risen to $2.5 trillion by the end of last year.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza