Balance of payments is always balanced. A negative balance on the current account is equated with positive balance in the capital account. The monetary authorities may finance a deficit by depleting their reserves of foreign currencies or by borrowing from the IMF etc. Hence BOP is always in balance.
Answers
Anish
Balance of payments is always balanced. A negative balance on the current account is equated with positive balance in the capital account. The monetary authorities may finance a deficit by depleting their reserves of foreign currencies or by borrowing from the IMF etc. Hence BOP is always in balance.