The Balance of Payments (BoP) is a comprehensive record of a country’s economic transactions with the rest of the world over a specific period.
It comprises the current account, which includes trade in goods and services, the capital account, covering financial transfers, and the financial account, detailing capital flows.
A positive BoP indicates a surplus, meaning a country is exporting more than it is importing, while a negative balance suggests a deficit.
tBoP is crucial for understanding a nation’s economic health, financial stability, and external trade relationships.