Balance of International Payments

A Balance of International Payments is a organizational financial measure that is defined as the difference between the total money flowing into a country and the money outflow to the rest of the world in a specific time period.

• AKA: Balance of Payments (BoP).
• Example(s):
  • International Monetary Fund (IMF) definition of the BoP:

    BoP $=$ current account $+$ financial account $+$ capital account $+$ balancing item $=0$,

  • Balance of Payments Surplus:

    BoP_surplus $=$ current account surplus + narrowly defined capital account surplus,

  • …
• Counter-Example(s):
  • Balance of Trade,
  • Private Transfer Payments,
  • Governmental Transfers.
• See: Exchange Rate Regime, Foreign-Exchange Reserves, Sudan, Ceteris Paribus, Current Account Balance, Transfer Payments, Loans, Investments, IMF Balance of Payments Manual.

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References

2022

• (Wikipedia, 2022) ⇒ https://en.wikipedia.org/wiki/Balance_of_payments Retrieved:2022-7-24.
  • In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world. These financial transactions are made by individuals, firms and government bodies to compare receipts and payments arising out of trade of goods and services.

    The balance of payments consists of two components: the current account and the capital account. The current account reflects a country's net income, while the capital account reflects the net change in ownership of national assets.

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