Service exports Service imports Merchandise exports $346 $354 $480 Merchandise imports $348 Income flows, net $153 Gifts to foreigners -outflow $ is leaving so -NEG Increase in the country's holding of foreign assets, net $142 $352 (Excluding official reserves assets) outflow Your country is investing abroad (outflow). Increase in foreign holdings of the country's assets, net (Excluding official reserves assets) inflow $252 Foreigners are investing in your country (inflow). Statistical discrepancy, net credit $154 Calculate the official settlements balance and the current account balance. Is the country increasing or decreasing its net holdings of official reserve assets? Why? 1st calculate 30. Net Export Export-Imports CA=NX+NHNUT = (480 + 346)-(348+354)=$124 million = 124 + 153+ (-142)=$135 million 2nd calculate OSB=CA + FA FA can be found in inflow FA=252-352-$-100 million FA=-100 Official Statistical Balance OSB-CA + FA OSB 135+(-100 = $35 million CA + FA +OR+ SD =0 35 +OR+ 154=0 OR = -$189 Million ->189 Million-> flows out of country to purchase international reserves (euro, points, yen) Holdings of reserves /^ OSB=Official Settlements Balance

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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I need help here. This was from the notes in a class. I saw you have an example of a similar problem. But the answer is very different . I need guidance to understand what I have here and how the prof went about the answer .
Service exports
Service imports
Merchandise exports
$346
$354
$480
Merchandise imports
$348
Income flows, net
$153
Gifts to foreigners -outflow $ is leaving so -NEG
Increase in the country's holding of foreign assets, net
$142
$352
(Excluding official reserves assets) outflow
Your country is investing abroad (outflow).
Increase in foreign holdings of the country's assets, net
(Excluding official reserves assets) inflow
$252
Foreigners are investing in your country (inflow).
Statistical discrepancy, net credit
$154
Calculate the official settlements balance and the current account balance.
Is the country increasing or decreasing its net holdings of official reserve assets? Why?
1st calculate
30. Net Export Export-Imports
CA=NX+NHNUT
= (480 + 346)-(348+354)=$124 million
= 124 + 153+ (-142)=$135 million
2nd calculate
OSB=CA + FA
FA can be found in inflow
FA=252-352-$-100 million
FA=-100
Official Statistical Balance OSB-CA + FA
OSB 135+(-100 = $35 million
CA + FA +OR+ SD =0
35
+OR+ 154=0
OR = -$189 Million ->189 Million-> flows out of country to purchase international reserves
(euro, points, yen)
Holdings of reserves /^
OSB=Official Settlements Balance
Transcribed Image Text:Service exports Service imports Merchandise exports $346 $354 $480 Merchandise imports $348 Income flows, net $153 Gifts to foreigners -outflow $ is leaving so -NEG Increase in the country's holding of foreign assets, net $142 $352 (Excluding official reserves assets) outflow Your country is investing abroad (outflow). Increase in foreign holdings of the country's assets, net (Excluding official reserves assets) inflow $252 Foreigners are investing in your country (inflow). Statistical discrepancy, net credit $154 Calculate the official settlements balance and the current account balance. Is the country increasing or decreasing its net holdings of official reserve assets? Why? 1st calculate 30. Net Export Export-Imports CA=NX+NHNUT = (480 + 346)-(348+354)=$124 million = 124 + 153+ (-142)=$135 million 2nd calculate OSB=CA + FA FA can be found in inflow FA=252-352-$-100 million FA=-100 Official Statistical Balance OSB-CA + FA OSB 135+(-100 = $35 million CA + FA +OR+ SD =0 35 +OR+ 154=0 OR = -$189 Million ->189 Million-> flows out of country to purchase international reserves (euro, points, yen) Holdings of reserves /^ OSB=Official Settlements Balance
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