- Revenue recognition:- Accounting rules have strict conditions for when to use gross/net values
- Regulatory restrictions:- The stock exchanges margin requirements(for derivatives trading) permit netting out only in certain defined situations
- Disclosures:- Where there are rights of setoff etc, the reporting institution(bank/FI) may want to netout the exposures and disclose only the net asset/liability on its balance sheet.
Before the subprime crisis, the net approach was widely considered but now the gross approach is also considered to be more representative. Still, for currency analysis, the net approach may probably work better
Bottom Line:- Depending on the purpose you want to analyze capital flows more, select the appropriate indicator(gross/net)