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BALANCE of PAYMENTS - Coggle Diagram

- - - - in case of: CURRENCY DEPRECIATION
        
        1- Worsening of Trade Balance
        
        2- Subsequent Recovery (Trade Balance Improvement)
  - - - Marketing Assets
      - Natural Resources
  - - - Credit (+inflow) becomes Liability
      - Debit (-outflow) becomes Income
      - 3 main categories:
        
        Direct Investment (FDI)
        
        Control on Foreign Business
        
        Portfolio Investment
        
        No Involvement of Transfer of Control
        
        Other Investments
        
        Transactions in Currency Banks Deposits
- - - - Autonomous Transactions (To Profit, Not Balance) :red_cross:
      - Payment Gap (BoP ≠ 0)
      - Government must intervene
        
        OFFICIAL RESERVE REQUIREMENT
        
        CB uses their Reserve to manipulate the currency's value in FOREX Market
    - - Difficulty in Recording Milions of Transactions