balance of payments ppt 2007

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For the subject of International Finance

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Page 1: BALANCE OF PAYMENTS PPT 2007

For the subject of International Finance

Page 2: BALANCE OF PAYMENTS PPT 2007

NAMES ROLL NOS.

SADANAND ADILKAR 01

NEEL JANI 15

SAMIR KHAN 27

APARNA PANCHAL 40

FARHANAZ SHAIKH 51

MAJID KHAN 75

CLASS :- T.Y.BMSDIVISION :- A

Page 3: BALANCE OF PAYMENTS PPT 2007

• Monetary Gold :- Its the gold reserves with the Reserve Bank Of India .

• SDR:- It stands for Special Drawings Rights. Contains a basket of 5 currencies or more.

• IMF:-It stands for International Monetary Fund. It refers to the

loans taken from the IMF for various national purposes.

• Amortizations:- Amortizations are payment of an obligation in a series of installments or transfers.

Page 4: BALANCE OF PAYMENTS PPT 2007

• Transfer Payments :- It is derived from labor i.e wages to employees living in neighboring countries .

• Government not classified elsewhere :- It includes government embassies and offices located in different countries.

• Non Monetary Gold Movements :- Non monetary gold movements is the gold used for selling and buying purposes between the people residing in the country.

• Merchandise – Private and Government Purchase :- Private purchase of merchandise is the purchase of goods for a value which is paid to the manufacturer and allies for the production and distribution purposes.

Page 5: BALANCE OF PAYMENTS PPT 2007

• Trade Deficit and Trade Surplus :- When the current account balance of balance of payment of a country come into surplus, it is known as trade surplus.

• Direct Investment :- Direct Investment is also known as Foreign Direct Investment. This foreign firm’s investment in India to set up a plant or a joint venture.

• Portfolio Investment :- Foreign Institutional Investments are also known as Portfolio Investment. It is highly volatile money and therefore is also referred to as “HOT MONEY”.

• Official Reserve Transactions :- The central bank transactions in international reserves, assets and gold is known by the term – “ Official Reserve Transactions”.

Page 6: BALANCE OF PAYMENTS PPT 2007

• Official International Reserves :- Foreign assets held by central banks are called as Official international Reserves.

• Importance of Balance of Payments :-i. Transactions for demand – supply equationii. Confirms economic trendsiii. Monetary policies

• Forecasting Exchange Rates – BOP

Page 7: BALANCE OF PAYMENTS PPT 2007

Sr. No. Particulars Credit Rs. Debit Rs. Net Rs.

A] Current A/C I) Merchandise

1. Private Purchase1. Government Purchase

II) Non – Monetary Gold Movements III) Invisibles

1. ServicesTransportationTravelInsuranceGovernment not classified elsewhereMiscellaneous2. Non – ServicesInvestment income/expenseTransfer/Unilateral payments

CURRENT A/C BALANCE (I+II+III)B] Capital A/C I) Private Transactions

1. Long – term capital1. Short – term capital

II) Official/ Government Capital1. Loans1. Amortizations1. Others

BALANCE OF CAPITAL A/CBASIC BALANCE

(Capital A/C + Current A/C) III) Reserves

IMFSDRMonetary GoldForex Reserves

STANDARDFORMAT AS PER RBI MANUAL

Page 8: BALANCE OF PAYMENTS PPT 2007