Current Account

 

Definition: Measures the difference in value between all imports and exports of goods, services, income and current transfers including net investment income.

 

 

Additional Info: If the current account is positive (surplus) then export revenue exceeds import payments. This is generally seen as a positive influence on domestic economy and a country's currency value.
If the current account represents a deficit (negative figure) depreciation of currency is often encouraged via: Reduced interest rates, import quotas and/ or duties and measures to promote exports.

Related Terms: Trade Balance

 

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