The foreign exchange market and the balance of payments accounts notes

These are the words you need for the foreign exchange market and the balance of payments. The foreign exchange market (also called the currency market) is where one currency is bought and sold for…

This section explains why countries trade: the demand reasons and the supply reasons. It then briefly explains the effects of international trade: specialisation, mass production, efficiency and…

This section explains the balance of payments (BoP): the structure of South Africa's accounts, what each item records, and how to read a BoP table. The balance of payments is a systematic record of…

This section explains the foreign exchange market: what it is, the demand for and supply of rand (or foreign currency), equilibrium, and appreciation and depreciation as market movements. It also…

This section explains how exchange rates are determined: the three exchange rate systems (free floating, managed floating and fixed), revaluation and devaluation as official changes, and the terms…

This section explains how a surplus or deficit on the balance of payments (a disequilibrium) can be corrected: with interest rates, import controls, borrowing and lending, changes in demand, export…