What is meant by bop
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Suman Babu 2 years, 9 months ago
Balance of Payments
It represents the net balance of foreign exchange inflows and outflows.
It includes all current account and capital account transactions.
BOP= NET CASH FLOWS FROM CURRENT ACCOUNT TRANSACTIONS - NET CASH FLOWS FROM CAPITAL ACCOUNT TRANSACTIONS
Current account transactions includes all the net foreign exchange from trade in goods and services and transfer payments.
Capital account transactions includes external borrowings, external assistance, foreign direct investment, investment in capital assets, foreign portfolio investments.
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