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Balance of Payments Structure of BOP
The Equation ,[object Object],[object Object],[object Object]
The Current Account ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Net Goods ,[object Object]
Net Services ,[object Object]
Net Primary Income ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Credits Debits
Net Secondary Income ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Capital Account ,[object Object],[object Object],[object Object],[object Object]
Financial Account ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Direct Investment ,[object Object]
Portfolio Investment ,[object Object],[object Object],[object Object]
Financial Derivatives ,[object Object]
Other Investments ,[object Object],[object Object],[object Object],[object Object]
Reserve Assets ,[object Object],[object Object],[object Object],[object Object]
Calculating the Balance on Capital and Financial Account Capital Transfer credits - Capital transfer debits =  Balance on Capital Account Net Direct Investment inflow + Net Portfolio Investment inflow + Net Other Investment Inflow + Net Change in Reserve Assets =  Net Financial Inflow or Financial Balance Balance on Capital Account + Financial Account Balance =  Balance on Capital and Financial Account

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BOP structure

  • 1. Balance of Payments Structure of BOP
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  • 15. Calculating the Balance on Capital and Financial Account Capital Transfer credits - Capital transfer debits = Balance on Capital Account Net Direct Investment inflow + Net Portfolio Investment inflow + Net Other Investment Inflow + Net Change in Reserve Assets = Net Financial Inflow or Financial Balance Balance on Capital Account + Financial Account Balance = Balance on Capital and Financial Account