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How does BOP deficit and BOP surplus managed through official reserve transaction.?
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How does BOP deficit and BOP surplus managed through official reserve ...
When the bop is in deficit the reserves of foreign currency is sold in the foreign exchange market whereas at the time of surplus the foreign currency reserves are purchased from the foreign exchange market
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Read the news report given below and answer the question that follow on the basis of the same: A lower trade deficit along with strong FDI and portfolio flows in F/Y 19 January-March quarter may help the external sector balance sheet and prop up both current account as well as the overall balance of payments numbers. This could reflect a lower current account deficit in the balance of payments for the quarter ended March. Trade balance, an important component of the current account, is estimated at a deficit of $35.6 billion for Q4 compared to $40.6 billion in the same period a year ago, thanks to lower crude prices and slowdown in gold and other imports. Other factors influencing the current account are software services income and remittances by overseas Indians. Market estimates for the F/Y 19 March quarter current account deficit is at $8.1 billion versus $13.2 billion for March’18 quarter.In the capital account, thanks to some bidding for defaulting companies by ArcelorMittal which are expected to have bought in some funds, FDI inflows in March is projected to be almost double the amount in the previous comparable period of March’18. Also, external commercial borrowing flows in the latest quarter are almost double the amount of the previous comparable quarter ending March’18. In addition, forex resources raised through the swap agreements with the commercial banks are expected to add another $5 billion through the foreign investment route. The overall balance of payments surplus is estimated higher at $17 billion for the latest March quarter compared to the $13 billion surplus in the March’18 quarter.Q. The Forex resources have surged in India. What effect does it have on the country?

Read the news report given below and answer the question that follow on the basis of the same: A lower trade deficit along with strong FDI and portfolio flows in F/Y 19 January-March quarter may help the external sector balance sheet and prop up both current account as well as the overall balance of payments numbers. This could reflect a lower current account deficit in the balance of payments for the quarter ended March. Trade balance, an important component of the current account, is estimated at a deficit of $35.6 billion for Q4 compared to $40.6 billion in the same period a year ago, thanks to lower crude prices and slowdown in gold and other imports. Other factors influencing the current account are software services income and remittances by overseas Indians. Market estimates for the F/Y 19 March quarter current account deficit is at $8.1 billion versus $13.2 billion for March’18 quarter.In the capital account, thanks to some bidding for defaulting companies by ArcelorMittal which are expected to have bought in some funds, FDI inflows in March is projected to be almost double the amount in the previous comparable period of March’18. Also, external commercial borrowing flows in the latest quarter are almost double the amount of the previous comparable quarter ending March’18. In addition, forex resources raised through the swap agreements with the commercial banks are expected to add another $5 billion through the foreign investment route. The overall balance of payments surplus is estimated higher at $17 billion for the latest March quarter compared to the $13 billion surplus in the March’18 quarter.Q. FDI inflows is recorded in which of the following accounts of Balance of Payment

Read the news report given below and answer the question that follow on the basis of the same: A lower trade deficit along with strong FDI and portfolio flows in F/Y 19 January-March quarter may help the external sector balance sheet and prop up both current account as well as the overall balance of payments numbers. This could reflect a lower current account deficit in the balance of payments for the quarter ended March. Trade balance, an important component of the current account, is estimated at a deficit of $35.6 billion for Q4 compared to $40.6 billion in the same period a year ago, thanks to lower crude prices and slowdown in gold and other imports. Other factors influencing the current account are software services income and remittances by overseas Indians. Market estimates for the F/Y 19 March quarter current account deficit is at $8.1 billion versus $13.2 billion for March’18 quarter.In the capital account, thanks to some bidding for defaulting companies by ArcelorMittal which are expected to have bought in some funds, FDI inflows in March is projected to be almost double the amount in the previous comparable period of March’18. Also, external commercial borrowing flows in the latest quarter are almost double the amount of the previous comparable quarter ending March’18. In addition, forex resources raised through the swap agreements with the commercial banks are expected to add another $5 billion through the foreign investment route. The overall balance of payments surplus is estimated higher at $17 billion for the latest March quarter compared to the $13 billion surplus in the March’18 quarter.Q. FDI inflows in March is a type of _____________.

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How does BOP deficit and BOP surplus managed through official reserve transaction.?
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