The balance of payments, as indicated above, reflects the flow of real and financial resources between residents and non-residents. These flows accumulate and form reserves. Stocks arising from the international movement of financial resources are recorded in the balance sheet of international investments. The balance of international investment (international investment balance) is a balance of […]
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Capital and Financial Transactions Account
The international movement of goods and services recorded in the current account of the balance of payments must be financed in some way. Financing is shown within several groups of balance of payments items, which are sometimes simplified as the balance of capital flows. Capital and financial account balance is a group of balance of […]
International interbank correspondent relations
One of the ways to accelerate and simplify payments and settlements is to establish correspondent relations between banks. Namely, the network of correspondent accounts supported by banks of various countries most effectively ensures the functioning of the international system of settlements and payments. The term “correspondent” comes from the French correspondent, which means to answer, […]
Basic conditions for international settlements
International commercial and banking practice has developed a number of ways to resolve mutual monetary claims and obligations in the field of international economic relations. Moreover, the implementation of these methods provides for determining the moment of transfer and payment of goods: immediately or with a deferred payment. Such a point determines the conditions of […]