What does balance of payments mean?

Balance of payments: refers to various economic transactions between an economy (usually a country or region) and other economies in the world within a certain period of time. The economic transactions are between residents and non-residents. Economic transactions, as flows, reflect the creation, transfer, exchange, transfer or reduction of economic value, including current account transactions, capital and financial account transactions and changes in international reserve assets. Balance of payments: According to the principle of double-entry bookkeeping, using a specific currency as the unit of measurement, using a concise tabular form to comprehensively reflect the relationship between an economy (generally a country or region) and other economies in the world during a specific period of time. All economic transactions that occur.

What is the balance of payments?

The balance of payments: the systematic recording and synthesis of all economic transactions between residents and non-residents of an economic entity within a certain period of time. The balance of payments is a flow concept that reflects all transactions recorded in currency, and records transactions between residents and non-residents of a country.

Optimal currency area: refers to an area formed by several countries or regions due to the free flow of production factors. The implementation of a fixed exchange rate system or a single currency system in this area is conducive to the establishment of balance between this area and other areas. Regulatory mechanism.

Triffin Dilemma: refers to the problem that under the Bretton Woods system, the US dollar, as the only reserve currency, has insurmountable inherent flaws: the US balance of payments surplus, but the supply of international reserve assets is insufficient; If the U.S. balance of payments runs a deficit, the credit of the U.S. dollar will be difficult to maintain.

Marshall-Lerner condition: When the national income of the country remains unchanged, the condition that devaluation can improve the trade balance is that the sum of the demand elasticities of import and export is greater than 1.

Exchange rate system: refers to a series of arrangements or regulations made by a country's monetary authorities on issues such as the determination of the level of the country's currency exchange rate and the way in which the exchange rate changes. Including: principles and basis for determining currency exchange rates; methods for maintaining and adjusting exchange rates; laws, systems and policies for managing exchange rates; and determining mechanisms for maintaining and managing exchange rates.

Current account: refers to the account that records the actual international flow of resources. It includes the following items: goods, services, income, and current transfers.

Capital and financial accounts: refers to accounts that record the international flow of asset ownership. It includes two parts: capital account and financial account.

International investment position: The concept that reflects a country’s assets and liabilities to the rest of the world at a certain point in time is the international investment position, and the net value obtained after a country’s external assets and liabilities are offset is the net international investment position. .

Meade conflict: refers to the situation where under a fixed exchange rate system, a country has only one policy tool, expenditure change, and cannot achieve both internal and external equilibrium economic goals at the same time.

Forward foreign exchange transaction: A type of foreign exchange transaction. The two parties sign a transaction contract in advance to determine the transaction time, transaction price, exchange rate and transaction currency, and deliver the goods upon maturity. This transaction can also be used for hedging or speculation.

The law of one price: means that under free trade conditions, the price of the same commodity expressed in the same currency around the world is the same.

Currency crisis: A broad currency crisis, also known as an exchange rate crisis, refers to a country's partner exchange rate changes significantly in a short period of time; a currency crisis in a narrow sense refers to a large-scale asset crisis in a country that implements a fixed exchange rate system. Displacement, a situation in which a fixed exchange rate system breaks down.

Absolute purchasing power parity theory: At a certain point in time, the ratio of the currency purchasing power (or price level) of two countries determines the ratio of currency exchange between the two countries; it is equal to the reciprocal ratio of the price levels of the two countries.

Balance of payments comprehensive account balance: refers to the difference between the current account and capital transfers, direct investment, securities investment and other accounts in the capital and financial account, that is, after excluding the official reserve account in the account balance.

Currency substitution: In the process of economic development, when the country loses confidence in the stability of the value of its own currency or the rate of return on its currency assets is relatively low, foreign currencies fully or partially replace the local currency in various functions of the currency. a phenomenon.

European currency market: refers to the market where non-residents use banks as intermediaries to lend and store currency (freely convertible) outside the territory of the country that issues the currency. It is also called the offshore currency market.

Mundell's rule: Under a fixed exchange rate system, the policy matching principle of assigning internal equilibrium goals to fiscal policy and external equilibrium goals to monetary policy.

J-shaped curve effect: When a country depreciates, it will initially further worsen the trade situation rather than improve it. Only after a period of time can the deterioration of the trade balance situation be controlled and improve, and eventually the trade situation will be improved. The balance of payments situation improved. This process is described by a curve, similar to the capital letter J, which refers to the time-lag effect of devaluation on the improvement of the trade balance.

Expenditure conversion policy: refers to exchange rate policy and direct control policy. Exchange rate policy refers to the purpose of adjusting the international balance of payments by adjusting the exchange rate and thereby adjusting the comparative relationship between imports and exports. Direct control policies refer to policies that balance the balance of payments through administrative orders (such as quantitative controls and price controls). Neither policy changes the level of aggregate demand, only the direction of spending.

Special Drawing Rights: A book asset allocated by the International Monetary Fund to member states according to their quotas and can be used to repay the balance of payments deficit between the International Monetary Fund and member states*** .

Arbitrage: refers to the use of differences in exchange rates of certain currencies in different foreign exchange markets, different currency types, and different delivery periods to...

Balance of Payments What are the characteristics of ?

The biggest feature is the "double surplus"

First, sustained, rapid and healthy economic development is an important basis for the further expansion of the international balance of payments surplus. Proactive fiscal policies and prudent monetary policies have achieved significant results, strategic adjustments to the economic structure have achieved initial results, various reforms have continued to deepen, and the level of opening up to the outside world has been further improved. These factors are conducive to enhancing the export competitiveness of enterprises, improving the foreign investment environment, and enhancing domestic and foreign confidence in the stability of the RMB exchange rate.

Second, the good external economic situation is the direct driving force for the further expansion of the balance of payments surplus. Huge market potential, low labor costs, long-term rapid economic growth and accession to the WTO made China the country that attracted the most foreign direct investment for the first time that year. The contract value of foreign direct investment increased by 20% year-on-year. The amount of valve usage increased by 13%.

Impact:

When the balance of payments surplus comes from the export of a large amount of real resources, it will restrict the long-term sustainable development of a country; while the net inflow of foreign investment increases The demand for funds from forward profits and interest outflows may also have a certain crowding-out effect on the use of domestic funds; if the inflow of funds contains a large amount of hot money, it is likely to pose a threat to a country's financial stability and economic security. . In addition, long-term balance of payments surplus may also lead to economic confrontation and sanctions from partner countries.

What does balance of payments mean?

The International Monetary Fund defines the balance of payments as: The balance of payments is a statistical statement that systematically records the transactions between economic entities and other parts of the world within a certain period of time. Most transactions are between residents and non-residents.

The balance of international payments is the sum of the current account and capital account.

What does balance of payments mean?

The balance of international payments refers to the sum of the current account and capital account.

The International Monetary Fund defines the balance of payments as: The balance of payments is a statistical statement that systematically records the transactions between economic entities and other parts of the world within a certain period of time. Most transactions are between residents and non-residents.

What is the balance of international payments?

The balance of international payments refers to the sum of current accounts and capital accounts.

The current account refers to the items that frequently occur in economic transactions between the country and foreign countries. It is the most important item in the balance of international payments and includes three items: foreign trade balance, non-trade transactions and free transfers.

The capital account refers to the international changes in claims and debts expressed in currencies between the country and foreign countries. In other words, it is the cross-border receipts and payments of capital that occur in international economic transactions for a certain economic purpose. project. Capital accounts include transfers of assets or financial assets between residents and non-residents.

What are the main items included in the balance of payments?

Hello. The balance of payments is a statement of balance of payments that reflects all economic transactions between a country and foreign countries in a certain period. The balance of payments is a systematic record of the actual dynamics of trade, non-trade, capital transactions and reserve assets that occur during the economic and technological exchanges between a country and other countries. It is an important tool for international balance of payments accounting. (1) Current account: It is the most basic and important item in the balance of payments, mainly recording international transactions of goods and services. It includes three sub-items: trade balance, labor service balance and transfer balance. (2) Capital account: records the outflow and inflow of capital as a form of funds, which can be divided into two sub-items: long-term and short-term capital flows. (3) Balancing and settlement items: including errors and omissions and official reserves. Hope this helps, and good luck with your work!

What does the balance of payments include?

The balance of payments contains a lot of content. What does LZ specifically refer to? The balance of payments account structure includes current accounts, financial accounts, and official settlement accounts.

What is the balance of payments declaration?

To put it bluntly, you have to report any money transactions you have with foreigners and foreign entities to the State Administration of Foreign Exchange. Income or expenditure, what is the amount?

If you are investing or borrowing money, you need to report how much receivables and payables you have.

The SAFE will conduct summary statistics based on the basic data in the report. as the basis for macro-control.

What does the balance of international payments refer to?

The balance of international payments in China’s CMA management accounting refers to the sum of current accounts and capital accounts. The accumulation of all transactions between a country and all other countries during a specified period.