The recent financial globalization addresses important global issues on external accounts, such as stocks of foreign assets and foreign liabilities, capital transactions, and their influence on a country’s economy. This study focuses on valuation effects in foreign assets and liabilities due to variations in exchange rates and asset prices. It identifies the determinants of valuation changes, focusing on a long-term perspective. The size of foreign assets and liabilities and their compositions are important in determining the direction and extent of valuation effects. In addition, financial exchange rates show a more significant relationship than other exchange rate measures do. Other variables related to a country’s macro economy and financial environment, such as GDP growth, GDP per capita, real interest rates, financial development, and age-dependency ratio, are also considered.