my country's balance of payments statement consists of four parts: current account, capital account and financial account, reserve assets, and net errors and omissions.
The current account includes the export and import of various material commodities, non-trade transactions of labor income and expenditure, investment income, and current transfer items such as remittances between relatives. When these items make my country's foreign exchange income greater than its expenditure, and the credits are greater than the debits, the current account balance will show a surplus balance, otherwise a current account deficit will appear.
Capital and financial projects include investment donations, capital projects for sale of land and patent copyrights, financial projects for direct investment and securities investment, and some other loan projects. When the amount of capital flowing into my country from foreign countries is greater than the amount of capital flowing from my country to foreign countries, there will be a capital account surplus, and vice versa.
Reserve assets mainly include monetary gold (1107.40, 4.10, 0.37%), special drawing rights, reserve positions in the IMF and foreign exchange, etc., which play a role in balancing the international balance of payments. When there is a surplus or deficit between the current account and the capital account, this item can be used to balance it. For example, in the "2011 Balance of Payments" released not long ago, for the whole of last year, the current account surplus was 201.7 billion U.S. dollars, the capital account surplus was 221.1 billion U.S. dollars, and the total "double surplus" was 422.8 billion U.S. dollars. The table shows reserves The asset quota is 387.8 billion yuan, which is to balance the surplus balance.
However, how come the amount of reserve assets used to balance the surplus is US$35 billion less? This is why the fourth item in the balance of payments, "net errors and omissions," exists. Due to the different statistical methods for calculating labor services, trade, capital accounts, etc. in the table, and the statistical methods of various countries, there will be errors. For the sake of standardization, this error data should also be presented in the table.