BOP Surplus? (1 Viewer)

[freehugsme]

Hey kids

Just a question, what is a BOP surplus. Maybe I've been ignorant all this time but I thought BOPs always added to zero b/c of the inverse relationship b/w the CFA & the CA (net omission errors aside and all) .

I Googled it and there was the example of China having both a CAS & a CFAS but is that really it? A surplus in both the Current Account and the Current Financial Account?

Haha TY. :uhhuh:

 

[lionking1191]

Hey kids

Just a question, what is a BOP surplus. Maybe I've been ignorant all this time but I thought BOPs always added to zero b/c of the inverse relationship b/w the CFA & the CA (net omission errors aside and all) .

I Googled it and there was the example of China having both a CAS & a CFAS but is that really it? A surplus in both the Current Account and the Current Financial Account?

Haha TY. :uhhuh:

under a floating exchange rate BoP always = 0

china doesn't have a floating exchange rate (hence their huge foreign reserves)