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Why Balance of payment is always balanced?

Balance of Payments always balances means any trade deficit or surplus has to be adjusted through the capital account funds. If adequate foreign exchange reserves are not available one has to borrow to balance the account.

What is the current balance of payments?

The current account balance of payments is a record of a country's international transactions with the rest of the world. The current account includes all the transactions (other than those in financial items) that involve economic values and occur between resident and non-resident entities.


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