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Why Balance of Payments is Important?

Writer's picture: BOPstatsMYBOPstatsMY

Updated: Jan 7, 2020

Balance of Payments is important:

  • To see movement of our trading between resident and non-resident.

  • To gauge investment in the country.

  • To analyze vulnerability to external shock in a world of increasingly mobile financial flows.

  • To understand the movements in the exchange rate through analysis of the supply and demand of foreign currencies.

  • To provide an indicator of excess or under - spending and indicator for the determination of monetary policy



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