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1- The imaginary nation of Pecunia had a current account deficit of $1.0 billion and a nonreserve financial account surplus of $700 million in 2019.
1- The imaginary nation of Pecunia had a current account deficit of $1.0 billion and a nonreserve financial account surplus of $700 million in 2019. Assume throughout the exercise that the capital account is 0. a. What was the balance of payments (official settlements balance) of Pecunia in that year? b. Assuming no valuation changes, what happened to Pecunia's net foreign wealth during 2019? c. Assume that foreign central banks did not buy nor sell Pecunian assets during 2019. How did Pecunian central bank's foreign reserve change in 2019? Explain how this official intervention would appear in the balance of payments
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