The BoP Theory of Exchange Rate Determination is a modern theory for exchange rate determination. BoP Deficit = appreciation of forex, i.e., exchange rate of forex↑ BoP surplus = depreciation of forex, i.e., exchange rate…
Elasticity Approach to BoP (Price Effect or Micro Effect) Devaluation & Revaluation – by policy adjustment by the government Depreciation & Appreciation – by market adjustment हामी संग १०० भारु = १६० नेरु छ। यदि…
Causes of BoP Deficit (BoP Disequilibrium) The BoP deficit or Balance of Payment Disequilibrium occurs due to various factors, which may be economic or non-economic. In some cases, the economic factor may be dominant, while…
In the previous post, we explained the causes of the BoP Deficit in Nepal. Now, we talk about how to adjust the BoP Disequilibrium. BoP disequilibrium refers to the situation of either a deficit or…
What is Balance of Payment (BoP) A balance of Payments is a systematic record of a country’s economic transactions with the rest of the world during a specific period. It records the inflow (receipts) and…