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.

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

“We think the balance of payments will turn its strongest in 15 years with foreign portfolio inflows,” economist Bum Ki Son writes in a note.

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For Elliott, “Argentina needs a much lower exchange rate, much higher interest rates and a significant economic contraction” to stabilize the balance of payments.

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If anything, Newsom may even have downplayed the size of California’s negative balance of payments with the federal government.

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

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"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."

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Related Words

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