Which create a demand for and generate a supply of a given currency

This spectrum of international trade and financial transactions is reflected in a nation’s international

balance of payments. A nation’s balance of payments statement attempts to record all the

Transactions which take place between its residents (including individuals, businesses, and governmental

Units) and the residents of all foreign nations. These transactions include merchandise

Exports and imports, tourist expenditures, purchases and sales of shipping and insurance services,

Interest and dividends received or paid abroad, purchases and sales of financial or real assets abroad,

And so forth.

Stated differently, any nation’s balance of payments shows the balance between all the payments

It receives from foreign countries and all the payments which it makes to them.

Мировая экономика

For example, the balance of export-import transactions in Russia in billions of dollars in 1999—

2000—2004 looked like this:

1999 2000 2004

(1) merchandise exports 62.0 89.2 181.5

(2) merchandise imports. 21.9 22.3 75,6

That is, in Russia exports exceeded imports, with a sharp fuel and raw materials trend of exports

(about 85 per cent) being observed. But to comprehend the state of a nation’s balance of payments,

This comparison of exports and imports is not enough. It is necessary to compare current accounts