CAPITAL ACCOUNT

There are two types of transaction in the capital account namely private and official. Private transaction include all types of investment : direct portfolio short-term Official transaction consist of loans to and from foreign official agencies.

ERRORS AND OMISSIONS

A balancing items that enables credit and debits to be equal.

OFFICIAL RESERVE ACCOUNT

The official reserve account consist of government gold and foreign currency reserve as well as government reserve with the International Monetary Fund and the Special Drawing Right .

BASIC CALCUATION OF THE BOP

Merchandise trade balance
= Merchandise export merchandise import

Service balance
= Service export services import

Balance in current account = merchandise trade balance + service balance + net income
+ current transfer

Balance on capital account = capital account + financial account Overall balance = balance current account + balance capital account + errors and omissions