Net capital outflow represents the quantity of dollars supplied in the foreign-currency exchange market.

Net capital outflow refers to the difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country's assets. When a country's residents invest more abroad than foreigners invest in the country, this results in a net outflow of capital, which corresponds to the supply of dollars in the foreign exchange market, as these dollars are exchanged for foreign currency to facilitate these investments.