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Balance of payments

The balance of payments is a correlation between the inflow of money into the country and the outflow of money from the country to the rest of the world. If inflows exceed outflows, the current account has a surplus (positive balance). Conversely, the current account has a deficit (negative balance). A surplus or deficit reduction is seen as a favourable factor for a national currency. The balance of payments has a minimal effect on the market.

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