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What is meant by official reserve …

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What is meant by official reserve transactions? Discuss their importance i balance of payments.

Posted by Angad Mehra 6 years, 8 months ago

CBSE > Class 12 > Economics

1 answers

Rajat Katkani 6 years, 8 months ago

Official reserve transactions are those transactions by Central Bank of a country which are done for covering the deficit or surplus in balance of payment account of the country as the central bank holds the Foreign Exchange Reserves when there is a deficit in balance of payment account the Reserve Bank withdrawal foreign exchange from its results which is recorded in the credit side of capital account of balance of payment and vice versa

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