Balance of Payments

Balance of Payments (BoP) systematically summarises, for a specific period, the economic transactions of an economy with the rest of the world. The BoP can be broadly divided into two accounts namely, (a) current account, and (b) capital and financial account. The current account measures the transfer of real resources (goods, services, income and transfers) between an economy and the rest of the world. The capital and financial account reflects the net changes in financial claims on the rest of the world.