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Roll No. Name
Subrat
15 Vincent Dsouza
16
Abhishek Gandhi17 Ravi Gowda
35 Manjunath Patel
Smita Samuel
Class : MFM III
Submitted To : Prof. Asha
Submitted By : Group No. 02
International Finance 1
BOP Analysis
of India, US
and Germany
from 2004-2014
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For internal use only
What is Balance of Payments?
Importance of the Balance of Payments?
The General Rule in BOP Accounting ?
The various components of a BOP statement?
Trends in Indias Balance of Payments?
Trends in US Balance of Payments?
Trends in Germany Balance of Payments?
Agenda
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What is BALANCE OF PAYMENT?
The balance of payments of a country is a systematic record
of all economic transactions between the residents of acountry and the rest of the world. It presents a classified
record of all receipts on account of goods exported, services
rendered and capital received by residents and payments
made by theme on account of goods imported and servicesreceived from the capital transferred to non-residents or
foreigners.
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IMPORTANCE OF THE BALANCE OF
PAYMENTS
BOP records all the transactions that create demand
for and supply of a currency. This indicates demand-supply equation of the currency. This can drivechanges in exchange rate of the currency with othercurrencies.
BOP may confirm trend in economys internationaltrade and exchange rate of the currency. This mayalso indicate change or reversal in the trend.
This may indicate policy shift of the monetary
authority (RBI) of the country.
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The General Rule in BOP Accounting
a) If a transaction earns foreign currency for the nation,
it is a credit and is recorded as a plus item.
b) If a transaction involves spending of foreign
currency it is a debit and is recorded as a negative
item.
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The various components of a BOP statement
A. Current Account
B. Capital Account
C. IMF
D. SDR Allocation
E. Errors & Omissions
F. Reserves and Monetary Gold
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TRENDS IN INDIAS BALANCE OF PAYMENTS
A country, like India, which is on the path of
development generally, experiences a deficit balanceof payments situation.
This is because such a country requires imported
machines, technology and capital equipments in order
to successfully launch and carry out the programmed of
industrialization
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India Balance of Trade
India recorded a trade deficit of 12228.60 USD
Million in July of 2014. Balance of Trade in Indiaaveraged -1879.17 USD Million from 1957 until 2014,
reaching an all time high of 258.90 USD Million in
March of 1977 and a record low of -20210.90 USD
Million in October of 2012. Balance of Trade in Indiais reported by the Ministry of Commerce and Industry,
India.
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Actual Previous Highest Lowest Dates Unit Frequency
-12228.6 -11763.2 258.9 -20210.9 1957 -2014
USD
Million Monthly
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India Balance of Trade
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India Balance of Trade
India had been recording sustained trade deficits due
to low exports base and high imports of coal and oil forits energy needs. India is leading exporter of petroleum
products, gems and jewelry, textiles, engineering
goods, chemicals and services. Main trading partners
are European Union countries, United States, Chinaand UAE. This page provides - India Balance of Trade -
actual values, historical data, forecast, chart, statistics,
economic calendar and news. Content for - India
Balance of Trade - was last refreshed on Thursday,August 21, 2014.
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United States Balance of Trade
The United States recorded a trade deficit of 41538
USD Million in June of 2014. Balance of Trade in theUnited States averaged -12573.26 USD Million from
1950 until 2014, reaching an all time high of 1946
USD Million in June of 1975 and a record low of -
67823 USD Million in August of 2006. Balance ofTrade in the United States is reported by the U.S.
Census Bureau
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Actual Previous Highest Lowest Dates Unit Frequency
-41538.00 -44392.00 1946.00 -67823.00 1950 -2014
USD
Million Monthly
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United States Balance of Trade
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United States Balance of Trade
The United States has been running consistent trade
deficits since 1980 due to high imports of oil and consumerproducts. In recent years, the biggest trade deficits were
recorded with China, Japan, Germany, Mexico and Saudi
Arabia. United States records trade surpluses with Hong
Kong, Australia, Netherlands and Belgium. This pageprovides - United States Balance of Trade - actual values,
historical data, forecast, chart, statistics, economic calendar
and news. Content for - United States Balance of Trade -
was last refreshed on Thursday, August 21, 2014.
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Germany Balance of Trade
Germany recorded a trade surplus of 16406 EUR
Million in June of 2014. Balance of Trade in Germanyaveraged 4290.10 EUR Million from 1950 until 2014,
reaching an all time high of 21410.60 EUR Million in
March of 2013 and a record low of -535.91 EUR
Million in April of 1991. Balance of Trade in Germanyis reported by the Federal Statistical Office
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Actual Previous Highest Lowest Dates Unit Frequency
16406.00 17800.00 21410.60 -535.91 1950 -2014
EUR
Million Monthly
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Germany traditionally had current account surpluses.
Since 1991 Germany has been experiencing current account deficits.
This is largely due to German reunification andt he resultant need to absorb more output
domestically to rebuild the former East Germany
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Germany Balance of Trade
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Germany Balance of Trade
Germany runs regular trade surpluses primarily due to its
strong export of cars and other machinery. Germany alsoexports chemical products, hardware, electronic equipment,
metals and pharmaceuticals. Germany main imports are
electronic devices, fuel, vehicle parts and metals. Main
trading partners are France, Netherlands, United States andItaly.
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Foreign trade of goods in 2013
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Foreign trade of goods in 2013
Export % Import %
Intermediate goods 31.5 Intermediate goods 30.4
Capital goods 27.2 Capital goods 19.7
Motor vehicles 17.5 Motor vehicles 9.4
Consumer goods 17.2 Consumer goods 20.2
Energy 2.8 Energy 14.8
Unclassifiable goods 2.7 Agricultural goods 3.4
Agricultural goods 1 Unclassifiable goods 2.2
Total 100 Total 100
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Thank You
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