What Are Balance Of Payments?
A balance of payments is a strategy used to analyze the relationship between money that is flowing into a country and money that is going out of that same country. Keeping this type of record makes it possible for nations to determine if the current balance between imports and exports is acceptable, or if some steps should be made to regulate the process in order to achieve a trade balance that is more favorable. In most cases, a balance of payments is compiled for either a calendar year or the fiscal year recognized by a particular national government.
