Scribd Logo
Upload

Welcome to Scribd!

  • 30 views

    Balance of Payments

    Uploaded by

    Algine Escol
    The balance of payments measures the accounts of a country's transactions with other countries. It records payments and receipts of residents between countries. The balance of payments is comprised of the current account, capital account, and financial account. The current account covers trade in goods, services, income, and transfers. The capital account covers capital transfers and assets. The financial account covers direct investment, portfolio investment, and other investments. A country aims to have a balanced or surplus balance of payments. A deficit can affect exchange rates and increase debts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Balance of Payments

    Uploaded by

    Algine Escol
    30 views12 pages
    The balance of payments measures the accounts of a country's transactions with other countries. It records payments and receipts of residents between countries. The balance of payments is comprised of the current account, capital account, and financial account. The current account covers trade in goods, services, income, and transfers. The capital account covers capital transfers and assets. The financial account covers direct investment, portfolio investment, and other investments. A country aims to have a balanced or surplus balance of payments. A deficit can affect exchange rates and increase debts.

    Original Description:

    :)

    Original Title

    balance of payments

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The balance of payments measures the accounts of a country's transactions with other countries. It records payments and receipts of residents between countries. The balance of payments is comprised of the current account, capital account, and financial account. The current account covers trade in goods, services, income, and transfers. The capital account covers capital transfers and assets. The financial account covers direct investment, portfolio investment, and other investments. A country aims to have a balanced or surplus balance of payments. A deficit can affect exchange rates and increase debts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views12 pages

    Balance of Payments

    Uploaded by

    Algine Escol
    The balance of payments measures the accounts of a country's transactions with other countries. It records payments and receipts of residents between countries. The balance of payments is comprised of the current account, capital account, and financial account. The current account covers trade in goods, services, income, and transfers. The capital account covers capital transfers and assets. The financial account covers direct investment, portfolio investment, and other investments. A country aims to have a balanced or surplus balance of payments. A deficit can affect exchange rates and increase debts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 12

    Balance of Payments

    Powerpoint Templates
    Ngayon nga po, sa kauna-unahang pagkakataon, investment grade na
    tayo ayon sa mga pinakatanyag na credit rating agencies. Malinaw ang
    sinasabi nito sa mga negosyante: Sulit mamuhunan sa Pilipinas; nabawasan
    na ang peligro sa pagnenegosyo dito. Ngayon, mas mababa ang interes at
    mas mahaba ang panahon ng pagbabayad ng utang, na nakakaengganyo sa
    mga negosyanteng tumaya sa Pilipinas. Sa pagtatayo at pagpapalawak ng
    negosyo, sisigla ang kalakalan, lalakas ang kompetisyon, at dadami ang
    oportunidad. Lahat ito, direktang resulta ng pagsulong ng reporma sa
    Daang Matuwid.
    Tingnan po natin: Noong 2010, nasa P1.07 billion lang ang net foreign
    direct investments na pumasok sa ating bansa. Noong 2014, pumalo na ng
    $6.2 billion ang net foreign direct investments. [Ito ang pinakamataas na
    naitala sa ating buong kasaysayan.
    Pati sa domestic investments, napakasigla ng mga numero; ngayon, ang
    Pilipino, tumataya sa kapwa Pilipino. Ikumpara natin: Mula nang una itong
    itala noong 2003 hanggang sa pag-upo natin noong 2010, P1.24 trillion lang
    ang approved na domestic investments. Mula naman third quarter ng 2010
    hanggang 2014, ang ipinasok na puhunan ng ating mga kababayan sa
    merkado: P2.09 trillion na po.
    Powerpoint
    6th State of the Nation Address Templates
    of President Benigno Aquino III (excerpted)
    Give and Take
    Americans buy automobiles from
    Japan and have no other transactions
    with Japan

    Balance of Payments

    Powerpoint Templates
    Balance of Payments

    - measures the accounts of a country


    record the payments and receipts of the
    residents of the country in their
    transactions with residents of other
    countries.

    Powerpoint Templates
    Balance of Payments
    The balance of payments is comprised of accounts
    (www.bsp.gov.ph)
    a. current account - trade in goods, services,
    primary income, and secondary income
    b. capital account - consists of capital transfers
    and acquisition and disposal of nonproduced,
    nonfinancial assets between residents and
    nonresidents.
    c. financial account- consists of direct
    investments, portfolio investments and other
    forms of investment.
    Powerpoint Templates
    Balance of Payments
    Current Account:
    1. Goods and Services
    Export - Credit
    Import – Debit
    2. Primary Income - receipts resident OF workers’
    earnings, as well as the profit of Philippine
    investments abroad.
    Investment Income Receipt – Credit
    Debt-Service Payments – Debit
    3. Secondary income(net remittances)
    Receipt – Credit
    – DebitTemplates
    PaymentsPowerpoint
    Balance of Payments

    Capital account
    consists of capital transfers and
    acquisition and disposal of nonproduced,
    nonfinancial assets between residents and
    nonresidents. This also includes grants
    and donations, the intention of which is for
    investment (i.e., machinery and
    equipment, buildings and structures).

    Powerpoint Templates
    Balance of Payments
    Financial account:
    1. Private Direct Investment (long-term) - capital
    participation in a company in which the investor has a
    significant degree of influence on management of the
    company. ( www.bsp.gov.ph)
    2. Portfolio Investment (short-term) – “hot money”
    hands-off or passive investment of securities in a
    portfolio, and it is made with the expectation of earning
    a return ( www.investopedia.com)

    Powerpoint Templates
    Balance of Payments
    Financial account:
    3. Financial Derivatives - financial instruments traded in
    financial market (www.imf.com)
    4. Other Investment

    Powerpoint Templates
    Current Account (A) 8396.0092 Capital Account (B) 81.7159
    Credit: Receipts 96.8954
    Goods and Services -17454.9220 Debit: Payments 15.1795
    Export 71443.3878 Financial Account (C) 2522.8753
    Import 88898.3098 Direct Investment -122.2800
    Primary Income 2330.7836 Net Acquisition of Financial Assets 5601.9356
    Credit: Receipts 9496.1979 Net Incurrence of Liabilities 5724.2156
    Debit: Payments 7165.4142 Portfolio Investment 4756.7832
    Secondary Income 23520.1475Net Acquisition of Financial Assets 2615.4603
    Credit: Receipts 24347.1312Net Incurrence of Liabilities -2141.3229
    Debit: Payments 826.9836 Financial Derivatives -32.6102
    Net Acquisition of Financial Assets -465.3710
    Philippines BOP 2015 Net Incurrence of Liabilities -432.7608
    (in million US dollars) Other Investment -2079.0177
    Source: www.bsp.gov.ph
    Net Acquisition of Financial Assets -1076.5411
    Net Incurrence of Liabilities 1002.4766
    NET UNCLASSIFIED ITEMS (D) -3338.3725
    OVERALL BOP POSITION A+B-C+DPowerpoint
    2616.4773
    Templates
    Balance of Payments Condition

    a. surplus (positive) – favorable BOP


    b. deficit (negative) – unfavorable BOP
    c. balance (zero)

    - can affect exchange rate and debts

    Powerpoint Templates
    How to Finance Payment Deficit?

    • Increase monetary reserves


    – borrow
    – Fiscal and monetary policies
    • Encouraging private and foreign
    investment

    Powerpoint Templates

    You might also like