The Balance of Payments (BoP) is a comprehensive account setting out a country's economic transactions with the rest of the world, divided into key sub-accounts such as the current account and the capital account.
A comprehensive financial account in various types of business, recording different aspects of share capital, investments, and capital expenditures.
A current account serves as an active account in the banking system where you can deposit and withdraw money via various mediums. It's crucial for personal, business, and international financial management.
Dollar drain refers to the amount by which a foreign country's imports from the United States exceed its exports to the United States, leading to a depletion of the country's dollar reserves.
Exchange control refers to government-imposed restrictions on the purchase and sale of foreign currencies. These controls are often instituted by countries experiencing shortages of hard currencies and can include different regulations for transactions that affect the capital account of the balance of payments.
A favorable trade balance occurs when the value of a nation’s exports exceeds the value of its imports, resulting in a surplus.
Hot money refers to capital that moves rapidly between financial markets to capitalize on interest rate differences or to avoid risks such as political intervention. Additionally, it may refer to dishonestly acquired money that needs to remain untraceable.
An international organization comprising 184 member countries, established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance-of-payments adjustment. The IMF, founded in 1945, is headquartered in Washington, D.C.
The International Monetary Fund (IMF) is an international organization established in 1944 to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
International reserves are holdings of foreign currencies and other assets that central banks use to manage currency values and balance payments between countries.
