Roll No.

Name
Subrat
15 Vincent Dsouza
16 Abhishek Gandhi
17 Ravi Gowda
35 Manjunath Patel
Smita Samuel
Class : MFM III

Submitted To : Prof. Asha

Submitted By : Group No. 02
International Finance
1

BOP Analysis
of India, US
and Germany
from 2004-2014
For internal use only
What is Balance of Payments?
Importance of the Balance of Payments?
The General Rule in BOP Accounting ?
The various components of a BOP statement?
Trends in Indias Balance of Payments?
Trends in US Balance of Payments?
Trends in Germany Balance of Payments?


Agenda
2

International Finance
For internal use only
What is BALANCE OF PAYMENT?
The balance of payments of a country is a systematic record
of all economic transactions between the residents of a
country and the rest of the world. It presents a classified
record of all receipts on account of goods exported, services
rendered and capital received by residents and payments
made by theme on account of goods imported and services
received from the capital transferred to non-residents or
foreigners.
3

International Finance
For internal use only
IMPORTANCE OF THE BALANCE OF
PAYMENTS
BOP records all the transactions that create demand
for and supply of a currency. This indicates demand-
supply equation of the currency. This can drive
changes in exchange rate of the currency with other
currencies.
BOP may confirm trend in economys international
trade and exchange rate of the currency. This may
also indicate change or reversal in the trend.
This may indicate policy shift of the monetary
authority (RBI) of the country.
4

International Finance
For internal use only
The General Rule in BOP Accounting
a) If a transaction earns foreign currency for the nation,
it is a credit and is recorded as a plus item.
b) If a transaction involves spending of foreign
currency it is a debit and is recorded as a negative
item.

5

International Finance
For internal use only
The various components of a BOP statement
A. Current Account
B. Capital Account
C. IMF
D. SDR Allocation
E. Errors & Omissions
F. Reserves and Monetary Gold

6

International Finance
For internal use only
TRENDS IN INDIAS BALANCE OF PAYMENTS
A country, like India, which is on the path of
development generally, experiences a deficit balance
of payments situation.
This is because such a country requires imported
machines, technology and capital equipments in order
to successfully launch and carry out the programmed of
industrialization
7

International Finance
For internal use only
India Balance of Trade
India recorded a trade deficit of 12228.60 USD
Million in July of 2014. Balance of Trade in India
averaged -1879.17 USD Million from 1957 until 2014,
reaching an all time high of 258.90 USD Million in
March of 1977 and a record low of -20210.90 USD
Million in October of 2012. Balance of Trade in India
is reported by the Ministry of Commerce and Industry,
India.

8

International Finance

Actual

Previous

Highest

Lowest

Dates

Unit

Frequency

-12228.6

-11763.2

258.9

-20210.9

1957 -2014
USD
Million

Monthly
For internal use only
India Balance of Trade
9

International Finance

For internal use only
India Balance of Trade
India had been recording sustained trade deficits due
to low exports base and high imports of coal and oil for
its energy needs. India is leading exporter of petroleum
products, gems and jewelry, textiles, engineering
goods, chemicals and services. Main trading partners
are European Union countries, United States, China
and UAE. This page provides - India Balance of Trade -
actual values, historical data, forecast, chart, statistics,
economic calendar and news. Content for - India
Balance of Trade - was last refreshed on Thursday,
August 21, 2014.

10

International Finance
For internal use only
United States Balance of Trade
The United States recorded a trade deficit of 41538
USD Million in June of 2014. Balance of Trade in the
United States averaged -12573.26 USD Million from
1950 until 2014, reaching an all time high of 1946
USD Million in June of 1975 and a record low of -
67823 USD Million in August of 2006. Balance of
Trade in the United States is reported by the U.S.
Census Bureau

11

International Finance

Actual

Previous

Highest

Lowest

Dates

Unit

Frequency

-41538.00

-44392.00

1946.00

-67823.00

1950 -2014
USD
Million

Monthly
For internal use only
United States Balance of Trade
12

International Finance

For internal use only
United States Balance of Trade
The United States has been running consistent trade
deficits since 1980 due to high imports of oil and consumer
products. In recent years, the biggest trade deficits were
recorded with China, Japan, Germany, Mexico and Saudi
Arabia. United States records trade surpluses with Hong
Kong, Australia, Netherlands and Belgium. This page
provides - United States Balance of Trade - actual values,
historical data, forecast, chart, statistics, economic calendar
and news. Content for - United States Balance of Trade -
was last refreshed on Thursday, August 21, 2014.

13

International Finance
For internal use only
Germany Balance of Trade
Germany recorded a trade surplus of 16406 EUR
Million in June of 2014. Balance of Trade in Germany
averaged 4290.10 EUR Million from 1950 until 2014,
reaching an all time high of 21410.60 EUR Million in
March of 2013 and a record low of -535.91 EUR
Million in April of 1991. Balance of Trade in Germany
is reported by the Federal Statistical Office
14

International Finance

Actual

Previous

Highest

Lowest

Dates

Unit

Frequency

16406.00

17800.00

21410.60

-535.91

1950 -2014
EUR
Million

Monthly
For internal use only
Germany traditionally had current account surpluses.

Since 1991 Germany has been experiencing current account deficits.

This is largely due to German reunification andt he resultant need to absorb more output
domestically to rebuild the former East Germany

15

For internal use only
Germany Balance of Trade
16

International Finance

For internal use only
Germany Balance of Trade
Germany runs regular trade surpluses primarily due to its
strong export of cars and other machinery. Germany also
exports chemical products, hardware, electronic equipment,
metals and pharmaceuticals. Germany main imports are
electronic devices, fuel, vehicle parts and metals. Main
trading partners are France, Netherlands, United States and
Italy.
17

International Finance
For internal use only
Foreign trade of goods in 2013

Export % Import %
Intermediate goods 31.5 Intermediate goods 30.4
Capital goods 27.2 Capital goods 19.7
Motor vehicles 17.5 Motor vehicles 9.4
Consumer goods 17.2 Consumer goods 20.2
Energy 2.8 Energy 14.8
Unclassifiable goods 2.7 Agricultural goods 3.4
Agricultural goods 1 Unclassifiable goods 2.2
Total 100 Total 100
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For internal use only
19

Thank You
20

International Finance