Balance of Payments A set of accounts called the country’s Balance Of Payments (BOP) summarizes all the transactions by residents, firms and government of one country with their counterparts in the rest of the world
BOP Accounts: Current Account Capital Account Official Settlements Account
Current Account: Merchandise Trade Military Transactions Travel and Transportation Other Services Investment Income Unilateral Transfers
Capital Account: Long-Term Capital Account: a.Transactions in Real Assets b.Transactions in Financial Assets Short-Term Capital Account: a.Short-Term Financial Assets b.Private Credits
Official Settlements Account: Official Reserves: a.Official Gold Reserves; b.Official Foreign Exchange Holdings; c.Reserve Position in the IMF; and d.Special Drawing Rights (SDRs) Liabilities to Foreign Authorities