​Trends in South Africa’s national financial account during 2015 were underpinned by an environment of elevated risk in the global financial landscape, deterioration in sovereign and currency risk, low business and consumer confidence levels, and subdued economic activity. On the macroeconomic policy front, the fiscal authorities continued their programme of gradual fiscal consolidation with the containment of non-financial public-sector borrowing needs, while the monetary authorities pursued a tightening stance in the interest rate cycle to stem the deteriorating inflation outlook. The implications of the above conditions and policy settings for financial flows are outlined in this note through the analysis of sectoral financial positions, cross-sectoral interaction and the choice of different financial instruments. The quarterly national financial accounts for 2015 are attached to this note, while the annual summary is published on pages S–46 to S–47 of this issue of the Quarterly Bulletin