balance of payments

noun

1. the difference between a nation's total payments to foreign countries, including movements of capital and gold, investments, tourist spending, etc., and its total receipts from foreign countries.

balance of payments

noun

1. the difference over a given time between total payments to foreign nations, arising from imports of goods and services and transfers abroad of capital, interest, grants, etc, and total receipts from foreign nations, arising from exports of goods and services and transfers from abroad of capital, interest, grants, etc

balance of payments

1. The relationship between the payments made by one nation to all other nations and its receipts from all other nations.

Notes

A nation whose payments exceed its receipts is said to be running an unfavorable balance of payments, which can affect the value of its currency in foreign countries. ( See foreign exchange .)

Word History and Origins

Origin of balance of payments¹

First recorded in 1835–45

Example Sentences

The IMF said it would immediately release about $1bn for Ethiopia to help its “balance of payments needs and provide support to the budget”.

From BBC

"So in fact, the balance of payments is still okay. That's what is so problematic is that from the data, you don't really feel that there is such a terrible situation in Israel."

From BBC

“We could also lower the ratings in the next 12-24 months if the impact of the conflict on Israel’s economic growth, fiscal position and balance of payments proves more significant than we currently project.”

From New York Times

People began to take to the streets as the foreign reserves were depleted because of an energy crisis and high inflation, triggering a balance of payments crisis.

From BBC

However, China recorded its first-ever quarterly deficit in foreign direct investment, according to balance of payments data out on Monday, underscoring Beijing's challenge in wooing overseas firms amid "de-risking" moves by Western governments.

From Reuters

Related Words

• balance of trade
• bop
• trade balance
• trade deficit