The Probert Encyclopaedia of Money

BALANCE OF PAYMENTS

In economics, the balance of payments are the accounts setting out a country' s transactions with the outside world. They are divided into various sub- accounts, notably the current account and the capital account. The former includes the trade account, which records the balance of imports and exports. Overall, the accounts must always be in balance. A deficit or surplus on the
balance of payments refers to an imbalance on a sub- account, usually the amount by which the foreign-exchange reserves of the government have been depleted or increased. The conventions used for presenting balance-of- payments statistics are those recommended by the International Monetary Fund.
Research Balance of Payments