Explain the distinction between Autonomous and Accommodating transactions in 'balance of payments'.

Question

Explain the distinction between Autonomous and Accommodating transactions in 'balance of payments'.

Explain the distinction between Autonomous and Accommodating transactions in 'balance of payments'. Also explain the concept of balance of payments 'deficit' in this context.

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Autonomous transactions are those 'which are not influenced by other transactions in Balance of Payment Account. Accommodating transactions are those which are undertaken to cover Deficit /Surplus in BOP.

Deficit in the BOP occurs when autonomous foreign exchange receipts fall short of autonomous foreign exchange payments. Autonomous transactions the transaction not influenced by other transactions in the BOP.