The balance of payments represents a systematic record of all payments and liabilities to foreigners and all payments and obligations received from foreigners, in dollars which is the currency commonly used for transactions. The transactions that imply capital outflows or payments and liabilities to foreigners are called debits, which are represented by a minus sign in the balance of payments. For example: the imports, loans to other countries and the expenditures made by national tourists in other countries. On the other hand, credits are those payments and obligations received from foreigners, such credits are represented by a plus sign. Clic aquí para ver más información, costos y para matricularse. Además mini-curso gratis de 10 días de Introducción al Forex. The most common structure of the balance of payments is the one that divide it into four accounts, which correspond to the nature of their transactions.
Balance on Merchandise Trade: this balance reflects all the imports and exports. A positive balance of trade is known as a trade surplus and a negative one is known as a trade deficit. Balance on services: the difference in value over a period of time of a country’s imports and exports of services and payments of property incomes. For example insurance, governmental services, travels and transportation. Unilateral Transfers: are those transfers in which one of the parties does not pay. In other words, gifts and shipments that the residents of a country send to another nation.
The current account is the sum of the sub-accounts previously mentioned. Capital Account: this account basically deals with the following transactions: foreign investments, short and long term loans, amortization of foreign debts, etc. These transactions can represent incomes or expenses as payments are made or received. This account is subdivided into two sub-accounts.