Balance of Payments is a statistical statement that summarizes transactions between residents and nonresidents during a period. The balance of payments comprises the current account, the capital account, and the financial account. "Together, these accounts balance in the sense that the sum of the entries is conceptually zero.
Balance of Payment can be used as an indicator of economic and political stability. For e.g. if a country has a consistently positive BOP, it would mean that there is significant foreign investment within that country. It also includes the trade balance, foreign investments and investments by foreigners.
Balance of Payments in Malaysia from 2005 to 2009 is as follows:
|
Balance of Payments Ringgit Malaysia in Million (RM in Million)
|
2005
|
2006
|
2007
|
2008
|
2009
|
|
Goods (net)
|
128,892
|
134,558
|
127,673
|
170,116
|
108,103
|
|
Services and income (net)
|
-33,555
|
-24,202
|
-11,520
|
-23,131
|
-11,474
|
|
Current account balance
|
78,367
|
93,504
|
100,410
|
129,936
|
80,003
|
|
Capital and financial account balance
|
-36,991
|
-43,488
|
-37,710
|
-123,596
|
-
|
|
Overall balance
|
13,550
|
25,158
|
45,296
|
-18,250
|
-
|
|
Central Bank international Reserves
|
265,240
|
290,399
|
335,695
|
317,445
|
-
|
|
Months of retained imports
|
7.7
|
7.8
|
8.4
|
7.6
|
-
|
Last Updated on: 17-11-2009
