What are the three major items in the balance of payments?

The balance of payments is usually divided into: current account, capital and financial account, reserve and related account.

1, current account

The current account mainly reflects the actual resource transfer between one country and other countries, and it is the most important item in the balance of payments. Current account includes goods (trade), services (intangible trade), income and unilateral transfer (current transfer). The current account surplus indicates that the country is a net lender, while the current account deficit indicates that the country is a net borrower.

2. Capital and financial projects

Capital and financial projects reflect international capital flows, including long-term or short-term capital outflows and capital inflows. It is the second largest item in the balance of payments. Capital account includes capital transfer and purchase or sale of unproductive and non-financial assets. The former is mainly investment donation and debt cancellation; The latter is mainly to buy or sell land and intangible assets (patents, copyrights, trademarks, etc. ).

3. Reserves and related items

Reserves and related items, including foreign exchange, gold and special drawing rights (SDR), are new international reserve assets created through international financial cooperation with the International Monetary Fund as the center.

A unit of account allocated by the International Monetary Fund (IMF) to member countries according to their contributions. It was officially released by the IMF at 1970. The SDR allocated by member countries can be used as reserve assets to make up the balance of payments deficit and repay the loan of the International Monetary Fund. Also known as "paper gold".

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Related uses

1. Analyze the balance of payments.

The focus of balance of payments analysis is to analyze the balance of payments situation and find out the reasons, so as to take corresponding countermeasures to reverse the imbalance situation.

2. Analyze the balance of payments structure.

By analyzing the structure of the balance of payments, we can reveal the position and role of each item in the balance of payments, find out the reasons from the structural changes, and provide a basis for guiding foreign economic activities.

Baidu Encyclopedia-Balance of Payments Statement