The following table shows the BOP for a hypothetical country.
|Item of the BoP
|Net Balance ($ billion)
|(A) Balance of trade in goods
|There is a trade deficit in goods.
|(B) Balance of trade in services
|There is a trade surplus in services.
|(C) Net investment income
|Net outflow of income, i.e., due to profits of international corporations
|(D) Net overseas transfers
|Net inflow of transfers, say, from remittances from non-resident citizens
|Adding A+B+C+D = Current account balance
|Overall, the nation runs a current account deficit
|Net balance of FDI flows
|Positive FDI net inflow
|Net balance of portfolio investment flows
|Positive net inflow into equity markets, property etc.
|Net balance of short term banking flows
|Small net outflow of currency from nation’s banking system
|There to reflect errors and omissions in data calculations
|Changes to reserves of gold and foreign currency
|(Means that gold and foreign currency reserves have been reduced
|Overall balance of payments