The balance of payments is usually divided into: current accounts, capital and financial accounts, reserves and related items.

1. Current account

The current account mainly reflects the transfer of actual resources between one country and other countries and is the most important item in the international balance of payments. The current account includes four items: goods (trade), services (intangible trade), income and unilateral transfer (current transfer). A current account surplus indicates that the country is a net lender, and a current account deficit indicates that the country is a net borrower.

2. Capital and financial items

Capital and financial items reflect international capital flows, including long-term or short-term capital outflows and capital inflows. It is the second largest category of items in the balance of payments. Capital items include capital transfers and the acquisition or sale of non-production and non-financial assets. The former is mainly investment donations and debt write-offs; the latter is mainly the acquisition or sale of land and intangible assets (patents, copyrights, trademarks, etc.).

3. Reserves and related items

Reserves and related items include foreign exchange, gold and allocated Special Drawing Rights (SDR). The SDR is centered on the International Monetary Fund. , a new international reserve asset created through international financial cooperation.

The International Monetary Fund (IMF) is an accounting unit allocated to member states based on the share paid by each member state. It was officially issued by the IMF in 1970. The SDR allocated to each member state can be used as a reserve. Assets are used to make up for the balance of payments deficit and can also be used to repay IMF loans. Also known as "paper gold".

Extended information:

Related purposes

1. Analysis of the balance of international payments situation

Analysis of the balance of international payments situation, key points It is to analyze the balance of payments and find out the reasons so that corresponding countermeasures can be taken to reverse the imbalance.

2. Analyze the balance of payments structure

Analyzing the balance of payments structure can reveal the status and role of each item in the balance of payments and identify problems from structural changes. Find out the reasons and provide a basis for guiding foreign economic activities.

Baidu Encyclopedia - Balance of Payments