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3. Current account transactions - goods: credits, debits and balance

Current account transactions - goods: credits, debits and balance

The balance of payments is a record of a country's international transactions with the rest of the world. The balance of payments is composed of two broad sub-balances: the current account and the capital and financial account. The current account is itself subdivided into four basic components: goods, services, income and current transfers. For each of these items, the current account registers the value of exports (credits) and imports (debits). The difference between these two values is the "balance".