| 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 n. A systematic record of a nation's total payments to foreign countries, including the price of imports and the outflow of capital and gold, along with the total receipts from abroad, including the price of exports and the inflow of capital and gold. |
The relationship between the payments made by one nation to all other nations and its receipts from all other nations.
Note: 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.)
Balance of Payments - BOP
A record of all transactions made by one particular country during a certain period of time. It compares the amount of economic activity between a country and all other countries.
Investopedia Commentary
This includes trade balance, foreign investments, and investments by foreigners among other things.
Related Links
What Is The Balance Of Payments?
What Is The World Trade Organization?
See also: Balance of Trade, Current Account, Debt Overhang, Economy, Foreign Currency Effect
Also spelled: BOP
balance of payments