The balance of payments is a summary document, revealing the revenue and expenditure of the funds of the country.It helps internal and external users to understand how the economic situation of the State.The most important is the balance of payments to the government, since it allows the analysis to find flaws in the management of public authorities, which are developed on the basis of effective measures to improve the current situation.
balance of payments reflects the flow of funds to the state and their disposal, such as the payment of debts to other countries or counterparties.Through this document, public authorities can make a prediction for the future, which shows how difficult it will be to the state to pay its debts in the next year.The balance of payments is considered the periodic reporting.As a rule, it consists of a year, but if necessary it can be formed semiannually or quarterly.
This document is the main assistant during predictive analysis, preparation of regulatory measures and the assessment of market conditions.What features should be taken into account when analyzing the statistics of balance?First, we should understand that the balance of payments reflects the degree of development of foreign trade activity of any country, its dynamics and the level of activity in a given period of time.And it affects the stability of the national currency, the expansion of industrial activity.Furthermore, it clearly shows all interested users scale inflow of foreign capital in the form of investment in various sectors and outflows beyond the state.
balance of payments directly affects the national bank, because on the basis of the information specified in it, are regulated by gold reserves.The information presented in the balance sheet is the basis for determining the goals and objectives of monetary and fiscal policy, as well as for the development of measures on regulation of the national currency.
As in the accounting balance of the country is in accordance with the basic principles, one of which is a double entry.That is, the operation is reflected in the debit should be closed correspondent accounts on the loan.Thus, the final line of debit and credit are equal, only statements are properly drawn up.Of course, there are exceptions.Experience has shown that to achieve a zero balance of payments surplus is sometimes impossible, for example due to temporary differences or substantial differences in the information sources.
Another feature is considered to be the fact that all operations, reflecting cash flows from exports, refer to the article of the loan.If we talk about the transactions with financial assets, the satisfaction of liabilities to non-residents of the country is reflected in the debit of the balance sheet, and their increase, respectively, on the contrary.
In general, the balance of payments can be divided into two major groups - the movement of capital and current operations.The latter include exports and imports of goods and services, and net investment income and remittances.Unit movement of capital reflects the transactions in financial assets.The balance of each section can be either negative or positive.For example, a positive balance of export and import shows that the import of foreign goods produced in larger quantities than the domestic garbage.
balance of payments can be active or passive.In the first case, we can conclude that the income from resident much less than the amount paid to them.Experience has shown that in many countries there is a shortage of this type of reporting, but there are surpluses.The imbalance must be addressed, in what essential assistance is provided by foreign exchange reserves of the country.
