Balance of Payment – What is Balance of Payment?

Balance Of Payment (BOP) of a country is a systematic record of all economic transactions completed between its citizens reside within or reside outside of that country during a year. In other words, the balance of payment shows the relationship between the one country’s total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.

Leave a Reply

Your email address will not be published. Required fields are marked *