Balance Of Payments and Exchange Rates-HADIZA

Balance of payments accounts are records of transactions of the economy accounts.the currents accounts deals with records of trade in goods and trades in services,that is the visible and invisible balance.Secondly.the capital involve investments in another country,which has to pass through the border.Also the financial and portfolio investments,there are also some financial derivatives.

The overall balance of payments,thoeratically is suppose to end at zero but when all the accounts added we some up with net errors and emissions.if balance of payments balances we only have to worry about the components.