Professional Documents
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Balance of Payment
Balance of Payment
Balance of Payments
Reserve Bank Of India, a Statistical Statement that systematically summarizes, for a specific time period, the economic transaction with the rest of the world.
The Current Account (known as CA) The Capital Account (known as KA) Statistical Discrepancy / Errors and Omissions Overall Balance (Surplus or Deficit) The Official Reserves Account (Monetary Movements)
Unlike the trade in goods, the other components of CA, namely Services, Investment Income and Unilateral Transfers, are not physically visible, hence sometimes they are clubbed together in the CA as Invisibles. Export and Import of services may include Transportation, Insurance etc.. Travel,
Investment Income is the second item of CA, which includes income receivable or payable on investments in home/foreign country by the way of interest or dividend.
The step FIVE is all about Official Reserve Account or Monetary Movements which includes IMF and Foreign Exchange Reserves. The DEFICIT OR SURPLUS in Overall Balance has to be adjusted through Monetary Movements of the country. The adjustment may be effected through IMF transactions OR through increase / decrease in Foreign Exchange Reserves of the Country. Official (Govt./Country) Reserves Assets include Gold, Foreign Currencies, SDRs, Reserve Positions in the IMF.
Correction of Disequilibrium
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Trade Measures
Export Promotion Import Control
Miscellaneous Measures