The document discusses the Balance of Payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given time period. BOP has three key components - the current account, capital account, and reserve account. The current account covers visible and invisible trade, while the capital account covers financial flows. A country experiences a BOP surplus if receipts exceed payments, and a deficit if payments exceed receipts. The document outlines various factors that can cause BOP disequilibria and measures to correct imbalances, such as monetary policy tools, export promotion, and import controls.
Balance of payments Presentation (complete)E Concepts
The presentation covers all important aspects of balance of payments majorly including;
Rules of Balance Of Payments
Balance of payments vs Balance of trade
Debit vs Credit transactions
Equilibrium vs disequilibrium in BOP
Measures to correct disequilibrium
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
Balance of payments Presentation (complete)E Concepts
The presentation covers all important aspects of balance of payments majorly including;
Rules of Balance Of Payments
Balance of payments vs Balance of trade
Debit vs Credit transactions
Equilibrium vs disequilibrium in BOP
Measures to correct disequilibrium
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
A fantastic PPT on the foreign exchange rate. The PPT includes meaning and concept of foreign exchange and foreign exchange rate, the systems of determining foreign exchange rate, depreciation of domestic, appreciation of domestic currency, devaluation and revaluation of domestic currency. This PPT also explain the role of RBI in managing the exchange rate by using the concept of managed floating. Just download it and make your concepts stronger. Happy Learning !!
A fantastic PPT on the foreign exchange rate. The PPT includes meaning and concept of foreign exchange and foreign exchange rate, the systems of determining foreign exchange rate, depreciation of domestic, appreciation of domestic currency, devaluation and revaluation of domestic currency. This PPT also explain the role of RBI in managing the exchange rate by using the concept of managed floating. Just download it and make your concepts stronger. Happy Learning !!
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
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Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
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how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
2. Balance of Payments
According to Kindle Berger, "The balance of payments of a
country is a systematic record of all economic transactions
between the residents of the reporting country and residents of
foreign countries during a given period of time".
It is a double entry system of record of all economic transactions
between the residents of the country and the rest of the world
carried out in a specific period of time
when we say “a country’s balance of payments” we are
referring to the transactions of its citizens and government.
3. Balance Of Payment : Definition
The balance of payments of a country is a systematic record of
all economic transactions between the residents of a country
and the rest of the world. It presents a classified record of all
receipts on account of goods exported, services rendered and
capital received by residents and payments made by them on
account of goods imported and services received from the
capital transferred to non-residents or foreigners.
- Reserve Bank of India
4. Features
It is a systematic record of all economic transactions
between one country and the rest of the world.
It includes all transactions, visible as well as invisible.
It relates to a period of time. Generally, it is an annual
statement.
It adopts a double-entry book-keeping system. It has
two sides: credit side and debit side. Receipts are
recorded on the credit side and payments on the debit
side.
5. Importance ofBalance Of Payments
BOP records all the transactions that create demand for and supply of a
currency.
Judge economic and financial status of a country in the short-term
BOP may confirm trend in economy’s international trade and exchange
rate of the currency. This may also indicate change or reversal in the
trend.
This may indicate policy shift of the monetary authority (RBI) of the
country.
BOP may confirm trend in economy’s international trade and exchange
rate of the currency. This may also indicate change or reversal in the
trend.
6. The General Rule in BOP Accounting
If a transaction earns foreign currency for the nation, it is a
credit and is recorded as a plus item.
If a transaction involves spending of foreign currency it is
a debit and is recorded as a negative item.
7. Components Of Balance Of Payments Account
Current Account
Capital Account
The Reserve Account
Errors and Omissions
8.
9. Current Account
• BOP on current account is a statement of actual receipts and payments in
short period.
• It includes the value of export and imports of both visible and invisible
goods. There can be either surplus or deficit in current account.
• The current account includes:- export & import of services, interests,
profits, dividends and unilateral receipts/payments from/to abroad.
• BOP on current account refers to the inclusion of three balances of
namely – Merchandise balance, Services balance and Unilateral Transfer
balance
10. Types of Balances In Current A/c
Balance of Trade (Visible Items)
Merchandise: exports - imports of goods
Income Balance (Invisible Items)
Services: exports - imports of services
Net international compensation to employees: net compensation of Employees
Net Unilateral Transfers (Capital Transfers )
Gifts from foreign countries minus gifts to foreigncountries
11.
12. Balance of Trade
The difference between a country's imports and its exports. Balance of
trade is the largest component of a country's balance of payments.
Debit items include imports,foreignaid, domestic spending abroad
and domestic investments abroad.
Credit items includeexports, foreign spending in the domestic
economy and foreign investments in the domestic economy.
When exports are greater than imports than the BOT is Favourable
and if imports are greater than exports then it is Unfavourable
13. Balance of Trade V/s Balance ofPayment
The Balance of Payment takes into account all thetransaction with
the rest of the worlds
The Balance of Trade takes into account all the trade transaction
with the rest of the worlds
14. BOP v/s BOT
BOP
It is a broad term.
It includes all transactions related to
visible, invisible and capital transfers.
It is always balances itself.
BOP = Current Account + Capital
Account + or - Balancing item
(Errors and omissions)
are main
affect
Followin
g which
a)Conditions of foreign
factors
BOP
lenders.
of Govt.
b)Economic policy
c) all the factors of BOT
BOT
It is a narrow term.
It includes only visible items.
It can be favourable or unfavourable.
BOT = Net Earning on
Export - Net payment for imports.
Following are main factors
which affect BOT
cost of production
availability of raw materials
Exchange rate
15. Capital Account
The capital account records all international transactions that involve a
resident of the country concerned changing either his assets with or his
liabilities to a resident of another country. Transactions in the capital
account reflect a change in a stock – either assets or liabilities.
It is difference between the receipts and payments on account of capital
account. It refers to all financial transactions.
The capital account involves inflows and outflows relating to investments,
short term borrowings/lending, and medium term to long term
borrowing/lending.
16. Capital AccountBalance
There can be surplus or deficit in capital account.
It includes: - private foreign loan flow, movement in banking
capital, official capital transactions, reserves, gold movement
etc.
These are classifies into three categories-
o Investment
o External Borrowings
o External Assistance
17.
18. The ReserveAccount
Three accounts: IMF, SDR, & Reserve and Monetary
Gold are collectively called as The ReserveAccount.
The IMF account contains purchases (credits) and re-
purchase (debits) from International Monetary Fund.
Special Drawing Rights (SDRs) are a reserve asset created
by IMF and allocated from time to time to member
countries. It can be used to settle international payments
between monetary authorities of two different countries.
19. Errors & Omissions
The entries under this head relate mainly to leads and lags in
reporting of transactions
It is of a balancing entry and is needed to offset the overstated or
understated components.
20. Disequilibrium In The Balance OfPayments
A disequilibrium in the balance of payment means its condition of
Surplus Or deficit
A Surplus in the BOP occurs when Total Receipts exceeds Total
Payments. Thus,
BOP= CREDIT>DEBIT
A Deficit in the BOP occurs when Total Payments exceeds Total
Receipts. Thus,
BOP= CREDIT<DEBIT
21. Causes of Disequilibrium In TheBop
Cyclical fluctuations
Short fall in the exports
Economic Development
Rapid increase in population
Structural Changes
Natural Calamites
International Capital Movements
22. Cyclical Disequilibrium in BOP
Cyclical Disequilibrium in Balance of Payment occurs because of the operation of the business cycles.
Secular Disequilibrium
Secular disequilibrium in Bop takes place because of the operation oflong term and deep sweated
changes in theeconomy.
Long term factors such as changes in population,technological changes, changes in the rate of
capital formationetc…
Structural Disequilibrium
It takes place due to structural changes in the economy affecting the demand and supply relations in
commodity and factor market.
Temporary Disequilibrium
It is a short Period Disequilibrium
It usually occurs due to the outbreak ofwar
23. Measures ToCorrect Disequilibrium in theBOP
1. Monetary Measures :-
a) Monetary Policy
The monetary policy is concerned with money supply and credit in the
economy. The Central Bank may expand or contract the money supply in
the economy through appropriate measures which will affect the prices.
b) Fiscal Policy
Fiscal policy is government's policy on income and expenditure.
Government incurs development and non - development expenditure,. It
gets income through taxation and non - tax sources. Depending upon the
situation governments expenditure may be increased or decreased.
24. c) Exchange Rate Depreciation
By reducing the value of the domestic currency, government can correct the
disequilibrium in the BoP in the economy. Exchange rate depreciation
reduces the value of home currency in relation to foreign currency. As a
result, import becomes costlier and export become cheaper. It also leads to
inflationary trends in the country,
d) Devaluation
devaluation is lowering the exchange value of the official currency. When a
country devalues its currency, exports becomes cheaper and imports become
expensive which causes a reduction in the BOPdeficit.
e) Deflation
Deflation is the reduction in the quantity of money to reduce prices and
incomes. In the domestic market, when the currency is deflated, there is a
decrease in the income of the people. This puts curb on consumption and
government can increase exports and earn more foreign exchange.
25. Measures ToCorrect Disequilibrium in theBOP
II. Non- Monetary measures :-
a) Export Promotion
To control export promotions the country may adopt measures to stimulate exports
like:
export duties may be reduced to boost exports
cash assistance, subsidies can be given to exporters to increase exports
goods meant for exports can be exempted from all types of taxes.
b) Import Substitutes
Steps may be taken to encourage the production of import substitutes. This will
save foreign exchange in the short run by replacing the use of imports by these
import substitutes.
26. c) Import Control
Import may be kept in check through the adoption of a wide variety of measures like quotas
and tariffs. Under the quota system, the government fixes the maximum quantity of goods
and services that can be imported during a particular time period.
1. Quotas – Under the quota system, the government may fix and permit the
maximum quantity or value of a commodity to be imported during a given period.
By restricting imports through the quota system, the deficit is reduced and the
balance of payments position is improved.
2. Tariffs – Tariffs are duties (taxes) imposed on imports. When tariffs are imposed,
the prices of imports would increase to the extent of tariff. The increased prices
will reduced the demand for imported goods and at the same time induce domestic
producers to produce more of import substitutes
27. Impact Of New Economic Policy On BOP
The new economic policies of the government have impacted the BOP in the following
ways:-
India’s current account balance (CAB) recorded a surplus of US$ 19.8 billion (3.9 per cent
of GDP) in Q1 of 2020-21 on top of a surplus of US$ 0.6 billion (0.1 per cent of GDP) in
the preceding quarter, i.e., Q4 of 2019-20; a deficit of US$ 15.0 billion (2.1 per cent of
GDP) was recorded a year ago [i.e. Q1 of 2019-20].
The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction
in the trade deficit to US$ 10.0 billion due to steeper decline in merchandise imports
relative to exports on a year-on-year basis.
Net services receipts remained stable, primarily on the back of net earnings from computer
services.
Private transfer receipts, mainly representing remittances by Indians employed overseas,
amounted to US$ 18.2 billion, a decline of 8.7 per cent from their level a year ago.
28. Net outgo from the primary income account, primarily reflecting net overseas investment
income payments, increased to US$ 7.7 billion from US$ 6.3 billion a year ago.
In the financial account, net foreign direct investment recorded outflow of US$ 0.4 billion
as against inflows of US$ 14.0 billion in Q1 of 2019-20.
Net foreign portfolio investment was US$ 0.6 billion as compared with US$ 4.8 billion in
Q1 of 2019-20 as net purchases in the equity market were offset by net sales in the debt
segment.
With repayments exceeding fresh disbursals, external commercial borrowings to India
recorded net outflow of US$ 1.1 billion in Q1 of 2020-21 as against an inflow of US$ 6.0
billion a year ago.
Net inflow on account of non-resident deposits increased to US$ 3.0 billion from US$ 2.8
billion in Q1 of 2019-20.
There was an accretion of US$ 19.8 billion to the foreign exchange reserves (on a BoP
basis) as compared with that of US$ 14.0 billion in Q1 of 2019-20
29. Recent Trends
Table 1: Major Items of India's Balance of Payments
(US$ billion)
April-June 2020 P April-June 2019
Credit Debit Net Credit Debit Net
A. Current Account 122.4 102.6 19.8 160.7 175.7 -15.0
1. Goods 52.3 62.3 -10.0 82.7 129.5 -46.8
Of which:
POL 4.9 13.1 -8.3 11.1 35.4 -24.2
2. Services 46.8 26.3 20.5 52.2 32.1 20.1
3. Primary Income 5.1 12.8 -7.7 5.8 12.1 -6.3
4. Secondary Income 18.2 1.2 17.0 20.0 2.0 18.0
B. Capital Account and Financial Account 126.8 146.1 -19.3 138.3 123.7 14.6
Of which:
Change in Reserves [Increase (-)/Decrease (+)] 0.0 19.8 -19.8 0.0 14.0 -14.0
C. Errors & Omissions (-) (A+B) 0.5 -0.5 0.4 0.4
P: Preliminary
Note: Total of subcomponents may not tally with aggregate due to rounding off.
30. India's current account balance posted a marginal surplus of USD 0.6 billion (0.1% of GDP)
in the Jan-Mar quarter 2020, as against a deficit of USD 4.7 billion in Jan-Mar 2019 and
USD 2.6 billion in the previous quarter. It is noteworthy that this is the first quarterly current
account surplus since the Jan-Mar quarter of 2007. It is primarily on account of lower trade
deficit at USD 35 billion and a rise in net invisible receipts (which includes services, primary
and secondary income) at USD 35.6 billion.
The lower trade deficit is a result of the sharp decline in demand at both the national and
international levels following the implementation of COVID-19 lockdowns and a fall in
global crude oil prices since the beginning of this year.
In the financial account, net foreign direct investment at USD 12 billion was higher than
USD 6.4 billion in Jan-March quarter 2019. On the portfolio investment side, there was a net
outflow of USD 13.7 billion compared to USD 9.4 billion inflow the same quarter last year
on account of money being pulled out from both debt and equity markets. A surplus at both
current and capital account has resulted in a forex reserve accretion of USD 18.8 billion in
the Jan-Mar quarter 2020.
31. Generally, a current account surplus is a piece of welcome news; however, in the current
scenario, it is a major worry for the Indian economy as it reflects a drop in economic activity.
Given that the imports collapsed more than the exports and overall trade balance
(services+goods) posted a surplus in the month of April and May, the current account will
likely remain in surplus in the June quarter.