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Balance of Payments

Introduction
The Balance of Payments accounts have been compiled to show the value of all transactions that take place between residents of Sierra Leone and non -residents. The accounts have been compiled and presented to correspond as closely as possible with the recommendations contained in the Fourth edition as well as part of the recommendations of the Fifth edition of the manual on Balance of Payments statistics as prepared by the International Monetary Fund. There are provisions in the manual for two tables for which Sierra Leone has no external transactions: Table 2 on Non-Monetary Gold, and Table 13 on External Assets and Liabilities of Local Authorities. For Balance of Payments purposes, residents of Sierra Leone comprise individuals living in Sierra Leone for the period exceeding one year. These include Central Government and Local Authorities; Agencies of the Sierra Leone Government operating abroad i.e. Embassies and all business enterprises and non -profit making organisations and institutions located in Sierra Leone but not their Head Offices and Branches abroad. Branches are treated as residents of the country in which they are located and subsidiaries where they are registered. Agents, in so far as they act on behalf of an overseas principals are, in general, treated as residents of the country in which the principal is registered. In borderline cases such factors as length of stay, the concentration of earning activities etc., determine the residential classif ication.Transactions are as far as possible, recorded when the ownership of goods or assets changes between residents and non residents and also when services are rendered. Recorded transactions are divided into three main groups: a. Current Account transactions which include imports and exports of goods and services, remittances of investment income and government and private transfer payments and receipts b. Capital and Financial Account transactions which include inter -Governmental loans, other Government capital transactions and private capital movement both long and short term c. Monetary movements, which include changes in the external monetary reserves, transactions with the International Monetary Fund, changes in external liabilities and claims on other cur rencies. That is to say, in a way analogous to a double entry bookkeeping systems the recording of a credit or debit inevitably means a corresponding change in the balance between assets and liabilities. Thus when a Sierra Leone firm imports goods from another country, the value is shown as a debit under visible trade. If the goods are paid for in an overseas currency, then this debit is reflected in a reduction in the

holdings of currencies by the Sierra Leone banks, i.e. in monetary movements. In the balance of payments table although the principle exists, it is often necessary to use entries that are derived from separate sources and these sometimes in themselves are neither complete nor precisely accurate. In order to bring the total of all entries to zero, an additional entry called Unrecorded Items is included to offset the effect of all errors and omissions

India balanc payment 2010


BALANCE OF PAYMENT

INDIAs trade deficit during the first nine months of fiscal 2009 -10 on a balance of payments (BoP) basis was lower at US$ 89.51 bn compared with US$ 98.44 bn during the same period in fiscal 2008 -09. The trade deficit on a BoP basis in Q3 (US$ 30.72 billion) was, however, less than that in Q3 of 2008 -09 (US$ 34.04 billion). This is revealed in e report (India's Balance of Payments Developments during the first quarter (October -December) of 2009-10) of the countrys central banking authority Reserve Bank of India (RBI).

The key features of Indias BoP that emerged in Q3 of fiscal 2009 -10 were:(i) Exports recorded a growth of 13.2 per cent during Q3 of 2009 -10 over the corresponding quarter of the previous year, after consecut ive declines in the last four quarters.(ii) Imports registered a growth of 2.6 per cent in Q3 of 2009 -10 after recording consecutive declines in the last three quarters.(iii) Private transfer receipts remained robust during Q3 of 2009 -10.(iv) Despite low trade deficit, the current account deficit was higher at US$ 12.0 billion during Q3 of 2009 -10 mainly due to lower invisibles surplus.(v) The current account deficit during April December 2009 was higher at US$ 30.3 billion as compared to US$ 27.5 billion during April-December 2008.(vi) Surplus in capital account increased sharply to US$ 43.2 billion during April -December 2009 (US$ 5.8 billion during April December 2008) mainly on account of large inflows under FDI, Portfolio investment, NRI deposits and commercial loans.(vii) As the surplus in capital account exceeded the current account deficit, there was a net accretion to foreign exchange reserves of US$ 11.3 billion during April -December 2009 (as against a drawdown of US$ 20.4 billion during April -December 2008).
Major Items of India's Balance of Payments (US$ million )
(2007-08) (PR) Exports Imports 166163 (2008-09) (P) 175184 April-December (2008-09) (PR) 150520 April-December (2009-10) (P) 124473

257789

294587

248967

213988

Trade Balance Invisibles, net Current Account Balance Capital Account*

-91626 74592

-119403 89587

-98446 70931

-89515 59185

-17034 109198

-29817 9737

-27516 7136

-30330 41630

Change in Reserves# (+ indicates -92164 increase;- indicates decrease)

20080

20380

-11330

The monetary approach to balance of payments: a review of the seminal long-run empirical research.(ECONOMICS ARTICLES)
Article from: Journal of Economics and Economic Education Research Article date: January 1, 2005

ABSTRACT
This paper provides a review of the seminal long -run empirical research on the monetary approach to the balance of payments with a comprehensive reference guide to the literature. The paper reviews the three major alternative theories of balance of payments adjustments. These theories are the elasticities and absorption approaches (associated with Keynesian theory), and the monetary approach. In the elasticities and absorption approaches the focus of attention is on the trade balance with unemployed resources. In the monetary approach, on the other hand, the focus of attention is on the balance of payments (or the money account) with full employment. The monetary approach emphasizes the role of the demand for and supply of money in the economy. The paper foc uses on the monetary approach to balance of payments and reviews the seminal long -run empirical work on the monetary approach to balance of payments. Throughout, the paper provides a comprehensive set of references corresponding to each point discussed. To gether, these references exhaust the existing long -run research on the monetary approach to balance of payments.