BALANCE OF PAYMENTS

1. Definition

1.1. is a statistical record of all the economic transactions between residents of the reporting country and residents of the rest of the world during a given time period

2. Reporting periods

2.1. The usual reporting period for all the statistics included in the accounts is a year

2.2. some of the statistics that make up the balance of payments are published on a more regular monthly and quarterly basis

3. Usage

3.1. reveals how many goods and services the country has been exporting and importing

3.2. whether the country has been borrowing from or lending money to the rest of the world.

3.3. whether or not the central monetary authority (usually the central bank) has added to or reduced its reserves of foreign currency is reported in the statistics

4. Transaction's criteria

4.1. whether or not the central monetary authority (usually the central bank) has added to or reduced its reserves of foreign currency is reported in the statistics

4.2. Purchases and sales between residents from the same country are excluded

5. Resident definition

5.1. ‘residents’ comprises individuals, households, firms and the public authorities

5.2. Tourists are regarded as being foreign residents if they stay in the reporting country for less than a year

5.3. Multinational corporations are by definition resident in more than one country

5.3.1. Multinational corporations are by definition resident in more than one country

5.4. f international organizations such as the International Monetary Fund, the World Bank, United Nations and so forth are treated as being foreign residents even though they may actually be located in the reporting country