INTERNATIONAL FLOW OF FUNDS

INTRODUCTION
• However a developed country may be, it has
to depend on other countries for something or
the other, as no country can produce all that is
required for its people.
• The economies of the world are necessarily
interdependent, especially in this era of
globalization.
• Specifically, international trade and
international flow of capital have assumed
greater importance.

19/04/2022 2
• In order to analyse and understand the
monetary aspects of a country’s international
interactions, a statement of balance of
international payments is prepared by every
country.

• Such a statement is called

BALANCE OF PAYMENTS (BOP)

19/04/2022 3
 BALANCE OF PAYMENTS

• The BOP is an accounting system that records

the economic transactions between the
residents and government of a particular
country and the residents and governments of
the rest of the world during a certain period of
time, usually a year.

19/04/2022 4
• Economic transactions include exports and
imports of goods and services, capital inflows and
outflows, gifts and other transfer payments and
changes in a country’s international reserves.

• For the government, the BOP provides valuable

information for the conduct of economic policy.

• For firms and individuals it provides clues about

expectations relating to such maters as the
volume of different types of trade and capital
flows, the movement of exchange rates etc.
19/04/2022 5
• In particular, a country’s own BOP is important
to investors, multinational companies,
business managers, consumers and
government official because it affects the
value of its currency.

• Its policy towards foreign investments and

influences important economic variables like
gross national product, interest rates, price
levels, employment scenario and exchange
rate.
19/04/2022 6
• International managers may be interested in a
foreign country’s balance of payments for
predicting the country's overall ability regarding
exports, imports, the payment of foreign debts
and dividend remittances.
• A country experiencing a severe BOP deficit
(shortage) is not likely to import as much as it
would in a surplus position.
• Persistent and continuing deficits in a country’s
BOP may signal future problems over payment
of dividends and interest fee or other cash
disbursements to foreign firms or investors.
19/04/2022 7
 • Also, the BOP is an important indicators
of the likely pressure on a country’s
foreign exchange rate.

19/04/2022 8
 FUNCTIONS OF THE BOP
• The main functions of a country’s BOP are:
1. The BOP helps to understand how various economic
transactions are brought into BOP in a given period.
2. An analysis of the BOP also reveals how a country is
paying for its imports and other transactions.
3. BOP acts as a guide to the monetary, fiscal, trade
and exchange rate policies of a government.
4. BOP statistics are also used extensively by business
enterprises and others who engage in international
economic transactions.

19/04/2022 9
 CHARACTERISTICS OF BOP ACCOUNT
• The main features are:
1. It is a systematic record of receipts and payments of
a country with other countries.
2. It is a statement of account related to a given period
of time. Generally One Year.
3. Receipts and payments are recorded on the basis of
double entry system.
4. Balance of payments includes receipts and
payments of all items of government and non-
government.

19/04/2022 10
 COMPONENTS OF THE
BALANCE OF PAYMENTS

19/04/2022 11
• The BOP is grouped into THREE main
categories with subdivision in each . The three
main categories are:

1. THE CURRENT ACCOUNT.

2. THE CAPITAL ACCOUNT.

3. THE RESERVE ACCOUNT.

19/04/2022 12
 1. THE CURRENT ACCOUNT
• The current account records all the exports and
imports of merchandise (visible) and invisible.
• Merchandise includes agricultural commodities and
industrial components and products.
• Invisibles includes :
a) Services
b) Income flows and
• Unilateral transfers
• (An economic transactions between residents of two
nations over a stipulated period of time, usually a
calendar year. Typically, these transactions consist of
gift exchanges, pension payments and the like, but
they can include other goods and services as well.)
19/04/2022 13
• Exports of services include spending by foreign
tourists in the country and overseas earnings of
residents, including firms.
• Imports of services include resident tourists’
spending abroad, payment made to foreign firms
for their services, and royalties on foreign books
and movies.
• Other items under the current account include
profits remitted by foreign branches of Indian
firms, interest received on foreign investments,
interest paid on foreign borrowing, and funds
received from foreign governments for the
maintenance of their embassies and consulates.
19/04/2022 14
• In other words, earnings in the form of interest ,
dividends and rent, also known as factor(part)
income, received by the residents of a country
and the income payments ( interest, dividends,
rents, etc) made by the residents of the country to
foreigners form part of the current account of the
BOP
• The official transfers like contributions to
international institutions, gifts or aid to foreigners,
and private transfers like cash remittances by
national residing abroad.
• (Ex:- non-resident Indian sending money to their
relatives in India)
19/04/2022 15
• As these transfer of funds do not involve any
specific services rendered by the residents of
the country.

• They are referred as unilateral transfers.

• Finally, all commercial transactions, private

remittances, and transfer of goods and
services from the government of the home
country to foreign government constitute the
current account of a country.
19/04/2022 16
• All exports of goods and services are credited
and all imports of goods and services are
debited to current account.

• The interests, dividends, and other incomes

received on assets held abroad are credited to
the current account .

• While the interests, dividends, and other

payments made on foreign assets held in the
country are debited.
19/04/2022 17
• The remittances received from abroad are
credited to the current account and the
remittances made to other countries are
debited.

• The receipt of funds in the form of gifts and

grants under unilateral transfers are recorded
as credit side in the BOP.

• Similarly the unilateral transfers to foreigners

are debited in the BOP.
19/04/2022 18
• When the sum of all the debits and the credits
is calculated, a country may have a deficit or
surplus.

• A trade surplus indicates that the country’s

exports are greater than its imports of goods.
The deficit indicates that the country’s imports
are greater than its exports.

19/04/2022 19
• A deficit in the BOPs on the current account
indicates how much the country will have to
borrow from abroad by issuing certain
financial securities like bonds, stock and bills
to finance its current account deficit.

• A current account surplus shows how much

the country will have to lend (provide) or
invest abroad.

19/04/2022 20
• India Current Account
• India reported a current account deficit
equivalent to 16.9 Billion USD in the third quarter
of 2011. India is leading exporter of gems and
jewelry, textiles, engineering goods, chemicals,
leather manufactures and services. India is poor
in oil resources and is currently heavily
dependent on coal and foreign oil imports for its
energy needs. Other imported products are:
machinery, gems, fertilizers and chemicals. Main
trading partners are European Union, The United
States, China and UAE .
19/04/2022 21
Indian term International term Indian International
coma position coma position

1 Lakh   100 Thousands 1,00,000 100,000

10 Lakhs 1 Million 10,00,000 1,000,000
1 Crore 10 Million 1,00,00,000 10,000,000
(100 Lakhs)  
10 Crore 100 Million 10,00,00,000 100,000,000
100 Crore 1 Billion 1,00,00,00,000 1,000,000,000

19/04/2022 22
19/04/2022 23
19/04/2022 24
19/04/2022 25
19/04/2022 26
 STRUCTURE OF THE CURRENT ACCOUNT IN INDIA’S BOP STATEMENT

A. CURRENT ACCOUNT CREDITS DEBITS NET

I. Merchandise XXX XXX XXX
II. Invisibles (a+b+c)
(a) Services xxx xxx xxx
1. Travel
2. Transportation
3. Insurance
4. Govt. not elsewhere classified
5. Miscellaneous.

(b) Transfers xxx xxx xxx

6. Official
7. private
( c ) Income xxx xxx xxx
(i) Investment income
(ii) Compensation to Employees
TOTAL CURRENT ACCOUNT ( I + II ) XXX XXX XXX

19/04/2022 27
 2.THE CAPITAL ACCOUNT
• The capital account of BOP reflects the capital
inflows and outflows of the country.
• The purchases of real assets (physical assets
like lands, buildings, and equipment) located
abroad and financial securities (stocks and
bonds) issued by foreign governments or
foreign companies are called capital
transactions.

19/04/2022 28
• The difference between such purchases made
by the residents of one country (India) in all
other countries, and such purchases by
residents of all other countries in India, is
called the balance on capital account.
• From the perspective (point of view) of India,
all purchases of domestic assets by foreigners
are credited to the capital account, and all
purchases of foreign assets made by the
residents of India are debited to the capital
account.

19/04/2022 29
• Sales of domestic assets by foreigners are
debited to the capital account, while sales of
foreign assets by Indians are credited to the
capital account.

• Increase in loans to foreigners by residents are

debited to the capital account, while increase
in loans to residents by foreigners are credited
to the capital account.

19/04/2022 30
 STRUCTURE OF THE CAPITAL ACCOUNT

B. CAPITAL ACCOUNT (1-5) CREDITS DEBITS NET

1. Foreign Investment (a + b)
(a) In India
(i) Direct
(ii) Portfolio
(b) Abroad
2. Loans (a + b + c)
(a) External Assistance
(i) By India
(ii) To India
(b) Commercial Borrowing ( MT & LT)
(i) By India
(ii) To India
© Short Term
(i) To India

19/04/2022 31
 STRUCTURE OF THE CAPITAL ACCOUNT

B. CAPITAL ACCOUNT (1-5) CREDITS DEBITS NET

3. Banking Capital (a + b)
(a) Commercial Banks
(i) Assets
(ii) Liabilities
(iii) Non-resident Deposits

(b) Others
4. Rupee Debt Service
5. Other Capital
TOTAL CAPITAL ACCOUNT ( 1 TO 5 )

19/04/2022 32
 3. RESERVE ACCOUNT
• Reserves are government owned assets. The
official reserve account represents only purchases
and sales by the central bank of the country (the
RBI).

• The changes in official reserves are necessary to

account for the deficit or surplus in the BOP.

• If a country has a BOP deficit, the central bank will

have to either run down its official reserve assets
such as gold, foreign exchange or borrow fresh
from foreign central banks.
19/04/2022 33
 RESERVE ACCOUNTS OR OTHER ACCOUNTS

CREDITS DEBITS NET

C. Errors and Omissions
D. Overall Balance (Total of Capital and
Current Accounts and Errors and
Omissions)
E. Monetary Movements
(i) IMF
(ii) Foreign Exchange Reserves
(Increase-/Decrease+)

19/04/2022 34
 ACCOUNTING PRINCIPLES IN BALANCE OF PAYMENTS
• The BOP is a standard double-entry accounting
record and as such is subject to all the rules of
double-entry book-keeping .

• For every transaction two entries must be made

one credit (+) and one debit (-) and leaving
aside errors and omissions.

• The total of credits must exactly match the total

of debits i.e. the BOP must always “balance”
19/04/2022 35
 EXAMPLES

• 1. Country A exports goods worth 500 to

country B. The goods have been invoiced in
and will be paid for in country B’s currency.
• Payment will be effected by crediting the bank
account which country A exporter holds with a
bank in country B.
• The balance in such an account is a foreign
asset for country A and a foreign liability for
country B.
• In country A’s BOP this will be recorded as
follows:
19/04/2022 36
 Particulars Credit Debit
CURRENT ACCOUNT
Merchandise exports 500

CAPITAL ACCOUNT
Increase in claims on 500
foreign bank

19/04/2022 37
 EXAMPLE 2

• Country A agrees to supply leather goods worth

300 to country B in return for crude oil worth
300 both valued in country B’s currency.
• Country A’s BOP will have the following entries:

Particulars Credit Debit

CURRENT ACCOUNT
Merchandise exports 300

CURRENT ACCOUNT
Merchandise imports 300

Country B’s BOP will show identical entries except that A’s exports will be B’s
imports and vice versa
19/04/2022 38
 EXAMPLE 3
• A bank in country A purchases securities
issued by the government of country B, valued
at 200 in B’s currency and pays for them by
drawing on an account it has with its
correspondent bank in country B.

• Here, country A has exchanged one financial

asset (the bank deposit) for another (the
bonds). The entry is as follows:

19/04/2022 39
 Particulars Credit Debit
CAPITAL ACCOUNT
Increase in foreign bond 200
holdings

CAPITAL ACCOUNT
Decrease in foreign bank 200
deposits

Country B’s BOP will show similar entries in its capital account

19/04/2022 40
 Factors Affecting
International Trade Flows

19/04/2022 41
 Factors Affecting International Trade Flows
• Impact of Inflation:
– A relative increase in a country’s inflation rate will
decrease its current account, as imports increase and
exports decrease.
– If a country’s inflation rate increase relative to
the countries with which it trades, its current
account would be expected to decrease, other
things being equal. Consumer and corporations
in that country will most likely purchase more
goods overseas (due to high local inflation),
while the country’s exports to other countries will
decline.
Cost and Management Accounting: An Introduction, 7th edition
Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 • Impact of National Income:

- If a country’s income level (national income)

increases by a higher percentage than
those of other countries, its current account
is expected to decrease, other things being
equal. As the real income level (adjusted for
inflation) rises, a percentage of that
increase in consumption will most likely
reflect an increased demand for foreign
goods
Cost and Management Accounting: An Introduction, 7th edition
Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 • Just as an increase in national income
can increase the demand for imports, a
reduction in national income may result
in the reduction in the demand for
imports.

• EX:- in INDIA software jobs.

Cost and Management Accounting: An Introduction, 7th edition

Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 Factors Affecting
International Trade Flows
• Impact of Government Restrictions
– A government may reduce its country’s
imports by imposing a tariff on imported
goods, or by enforcing a quota.
– Some trade restrictions may be imposed on
certain products for health and safety
reasons.

Cost and Management Accounting: An Introduction, 7th edition

Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 • Tariffs and Quotas: if a country’s government
imposes a tax on imported goods (referred to as
a tariff) , the prices of foreign goods to
consumers are effectively increased.
• Some industries are more highly protected by
tariffs than others.
• In addition to tariffs, a government can reduce its
country’s imports by enforcing a Quota, or a
maximum limit can be imported.
• Quotas have been commonly applied to a
variety of goods imported by the India and other
countries.
•
Cost and Management Accounting: An Introduction, 7th edition
Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 • Impact of Exchange Rates
– If a country’s currency begins to rise in value,
its current account balance will decrease as
imports increase and exports decrease.
• The factors interact, such that their
simultaneous influence on the balance of
trade is complex.

Cost and Management Accounting: An Introduction, 7th edition

Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 • Other Type of Restrictions: Some trade
restrictions may be imposed on certain products
for health and safety reasons.
• Ex:- in 2001, an outbreak of foot-and-mouth
disease occurred in the UK and eventually
spread to several other European countries. This
disease can spread by direct or indirect contact
with infected animals.
• The US government imposed trade restrictions
on some products produced in the UK for health
reasons. Consequently, UK exports to the US
declined abruptly.

Cost and Management Accounting: An Introduction, 7th edition

Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 • Ex: Plague disease in India and its
impact on Maharashtra

• This examples illustrates how

uncontrollable factors besides
inflation, national income, tariffs and
quotas and exchange rates can affect
the balance of trade between two
countries.

Cost and Management Accounting: An Introduction, 7th edition

Colin Drury
ISBN 978-1-40803-213-9 © 2011 Cengage Learning EMEA
 Correcting
A Balance of Trade Deficit
• By reconsidering the factors that affect
the balance of trade, some common
correction methods can be developed.
• For example, a floating exchange rate
system may correct a trade imbalance
automatically since the trade imbalance
will affect the demand and supply of the
currencies involved.

A2 - 50
 Correcting
A Balance of Trade Deficit
• However, a weak home currency may not
necessarily improve a trade deficit.
¤ Foreign companies may lower their prices
to maintain their competitiveness.
¤ Some other currencies may weaken too.
¤ Many trade transactions are prearranged
and cannot be adjusted immediately. This
is known as the J-curve effect.

A2 - 51
 International Capital Flows

• Capital flows usually represent portfolio

investment or direct foreign investment.
• The Direct foreign investment (DFI)
positions inside and outside the U.S. have
risen substantially over time, indicating
increasing globalization.
• In particular, both DFI positions increased
during periods of strong economic
growth.
A2 - 52
 Factors Affecting DFI

• Changes in Restrictions
¤ New opportunities may arise from the
removal of government barriers.
• Privatization
¤ DFI has also been stimulated by the selling
of government operations.
• Potential Economic Growth
¤ Countries with higher potential economic
growth are more likely to attract DFI.
A2 - 53
 Factors Affecting DFI

• Tax Rates
¤ Countries that impose relatively low tax
rates on corporate earnings are more likely
to attract DFI.
• Exchange Rates
¤ Firms will typically prefer to invest their
funds in a country when that country’s
currency is expected to strengthen.

A2 - 54
 Factors Affecting
International Portfolio Investment

• Tax Rates on Interest or Dividends

¤ Investors will normally prefer countries
where the tax rates are relatively low.
• Interest Rates
¤ Money tends to flow to countries with high
interest rates.
• Exchange Rates
¤ Foreign investors may be attracted if the
local currency is expected to strengthen.
A2 - 55
 Agencies that Facilitate
International Flows

• The IMF was imagined in July 1944, when

representatives of 45 countries meeting in the town of
Bretton Woods, New Hampshire, in the northeastern
United States, agreed on a framework for international
economic cooperation, to be established after the
Second World War.  They believed that such a
framework was necessary to avoid a repetition of the
disastrous economic policies that had contributed to the
Great Depression.
A2 - 56
• As a result of this conference, the International
Monetary Fund (IMF) was formed.
• The IMF came into formal existence in December
1945, when its first 29 member countries signed its
Articles of Agreement. It began operations on March
1, 1947. Later that year, France became the first
country to borrow from the IMF.

A2 - 57
• The International Monetary Fund (IMF) is an
organization of 187 countries, working to foster global
monetary cooperation, secure financial stability,
facilitate international trade, promote high
employment and sustainable economic growth, and
reduce poverty around the world.

A2 - 58
International Monetary Fund (IMF)
• The major objectives are:
1. Promote cooperation among countries on
international monetary issues.
2. Promote stability in exchange rates
3. Provide temporary funds to member countries
attempting to correct imbalances of international
payments.
4. Promote free mobility of capital funds across
countries and
5. Promote free trade.
A2 - 59
• It is clear from the objectives that the
IMF’s goals encourage increased
internationalisation of business.
• During the international debt crisis that erupt ed
(exploded) in August 1982, the IMF provided
financing to many of the countries experiencing
debt-repayment difficulties. The IMF worked
with each country individually to develop and
implement policies that would improve its
balance of trade positions.

A2 - 60
 Agencies that Facilitate
International Flows
International Monetary Fund (IMF)
• it aims In brief:-
¤ to promote international monetary
cooperation and exchange stability;
¤ to promote economic growth and high
levels of employment; and
¤ to provide temporary financial assistance
to help ease imbalances of payments.

A2 - 61
 Agencies that Facilitate
International Flows
International Monetary Fund (IMF)
• Its operations involve surveillance
(observation), financial and technical
assistance.
• In particular, its compensatory financing
facility attempts to reduce the impact of
export instability on country economies.
• The IM F uses a quota system, and its unit
of account is the SDR (special drawing
right). A2 - 62
 Agencies that Facilitate
International Flows
World Bank Group
• Established in 1944, the Group assists
development with the primary focus of
helping the poorest people and the
poorest countries.
• It has 187 member countries, and is
composed of five organizations - IBRD,
IDA, IFC, MIGA and ICSID.

A2 - 63
 Agencies that Facilitate
International Flows
IBRD: International Bank for
Reconstruction and Development
• Better known as the World Bank, the IBRD
provides loans and development
assistance to middle-income countries
and creditworthy poorer countries.
• In particular, its structural adjustment
loans are intended to enhance a country’s
long-term economic growth.
A2 - 64
 Agencies that Facilitate
International Flows
IBRD: International Bank for Reconstruction
and Development
• The IBRD is not a profit-maximizing
organization. Nevertheless, it has earned a
net income every year since 1948.
• It may spread its funds by entering into
co-financing agreements with official aid
agencies, export credit agencies, as well
as commercial banks.
A2 - 65
• The International Bank for Reconstruction
and Development (IBRD) aims to reduce
poverty in middle-income and creditworthy
poorer countries by promoting sustainable
development through loans, guarantees, risk
management products, and analytical and advisory
services. Established in 1944 as the original institution
of the World Bank Group, IBRD is structured like a
cooperative that is owned and operated for the benefit
of its 187 Member countries

A2 - 66
• Nearly seventy percent of the world’s poor,
defined as people who earn less than $2 per
day, live in middle-income countries. These
countries   borrow from IBRD and have a large
unfinished social agenda that includes meeting
and surpassing the Millennium Development
Goals.

A2 - 67
 Products & Services
• The World Bank offers a wide range of
lending and non-lending solutions to meet
the world's development challenges.
• Its main source of funds is the sale of bonds and other
debt instruments to private investors and governments.
The World Bank has a Profit-oriented philosophy.
Therefore, its loans are not subsidized but are extended
at market rates to governments (and their agencies)
that are likely to repay them.

A2 - 68
 Products & Services
• A key aspect of the World Bank’s mission is
the Structural Adjustment Loan (SAL), established
in 1980. The SALs are intended to enhance a
country’s long term economic growth.
• SALs have been provided to some less developed
countries that are attempting to improve their balance
of trade.
• Because the world bank provides only a small portion
of the financing needed by developing countries, it
attempts to spread its funds by entering into co-
financing agreements. Co-financing is performed in
the following ways. A2 - 69
• Official aid agencies: Development agencies may
join the World Bank in financing development
projects in low-income countries.
• Export Credit Agencies: the World Bank co-
finances some capital intensive (concentrated)
projects that are also financed through export credit
agencies.
• Commercial Banks: the World Bank has joined with
commercial banks to provide financing for private
sector development. In overall more than 350 banks
from all over the world have participated in co-
financing , including Bank of America, Citigroup
etc.
A2 - 70
• The World Bank is one of the largest
borrowers in the world; its borrowings
have amounted to the equivalent of $70
billion. Its loans are well diversified among
numerous currencies and countries. It has
received the highest credit rating (AAA)
possible.

A2 - 71
 Agencies that Facilitate
International Flows
IDA: International Development Association
• IDA was set up in 1960 as an agency that
lends to the very poor developing nations
on highly concessional terms.
• IDA lends only to those countries that lack
the financial ability to borrow from IBRD.
• IBRD and IDA are run on the same lines,
sharing the same staff, headquarters and
project evaluation standards.
A2 - 72
 Agencies that Facilitate
International Flows
IFC: International Finance Corporation
• The IFC was set up in 1956 to promote
sustainable private sector investment in
developing countries, by
¤ financing private sector projects;
¤ helping to mobilize financing in the
international financial markets; and
¤ providing advice and technical assistance
to businesses and governments.
A2 - 73
 Agencies that Facilitate
International Flows
M IGA: Multilateral Investment Guarantee
Agency
• The MIGA was created in 1988 to promote
FDI in emerging economies, by
¤ offering political risk insurance to investors
and lenders; and
¤ helping developing countries attract and
retain private investment.

A2 - 74
 Agencies that Facilitate
International Flows
ICSID: International Centre for Settlement of
Investment Disputes
• The ICSID was created in 1966 to facilitate
the settlement of investment disputes
between governments and foreign
investors, thereby helping to promote
increased flows of international
investment.

A2 - 75
 Agencies that Facilitate
International Flows
World Trade Organization (WTO)
• Created in 1995, the WTO is the successor
to the General Agreement on Tariffs and
Trade (GATT).
• It deals with the global rules of trade
between nations to ensure that trade flows
smoothly, predictably and freely.
• At the heart of the WTO's multilateral
trading system are its trade agreements.
A2 - 76
 Agencies that Facilitate
International Flows
World Trade Organization (WTO)
• Its functions include:
¤ administering WTO trade agreements;
¤ serving as a forum for trade negotiations;
¤ handling trade disputes;
¤ monitoring national trading policies;
¤ providing technical assistance and training
for developing countries; and
¤ cooperating with other international groups.
A2 - 77
 Agencies that Facilitate
International Flows
Bank for International Settlements (BIS)
• Set up in 1930, the BIS is an international
organization that fosters (encourages)
cooperation among central banks and
other agencies in pursuit of monetary and
financial stability.
• It is the “central banks’ central bank” and
“lender of last resort.”

A2 - 78
 Agencies that Facilitate
International Flows
Bank for International Settlements (BIS)
• The BIS functions as:
¤ a forum for international monetary and
financial cooperation;
¤ a bank for central banks;
¤ a center for monetary and economic
research; and
¤ an agent or trustee in connection with
international financial operations.
A2 - 79
 Agencies that Facilitate
International Flows
Regional Development Agencies
• Agencies with more regional objectives
relating to economic development include
¤ the Inter-American Development Bank;
¤ the Asian Development Bank;
¤ the African Development Bank; and
¤ the European Bank for Reconstruction and
Development.

A2 - 80
 Please visit for update on BOP
• http://indianblogger.com/indias-balance-of-
payments-part-i/

• http://indianblogger.com/indias-balance-of-pa
yments-part-ii
/
• http://www.worldbank.org

• http://www.sharemarketbasics.com/
19/04/2022 81
THAN “Q”

A2 - 82