Saturday, August 10, 2013

Balance of Payment

Balance of Payment = Current accounts + Capital Accounts

Current Accounts =  (X-M) + NY + NCT
X & M  = Net import/export of goods and services
NY = Net income from abroad
NCT = Net current transfer

Capital Accounts = changes of foreign ownership of domestic assets +changes of domestic ownership of foreign assets

Capital Accounts = FDI + Portfolio Investment + Other Investment + Reserve Accounts

Source: Wikipedia.

No comments: