45FR7J SmartArt A v isit A SIMPLIFIED SAMPLE BOP Consider demand Imports (M) 100 (supply) and supply Exports (X) 80 (demand) of forex Current A/C Bal. ($Aus) -20 Forex Demand = 100 VOL Net Acqu. Net Acqu. (M) Assets Liabilities Forex Supply = 80 (X) + Direct Inv. +50(F) 50 (F) Portfolio Inv. +30(F). => ex. S (D) of forex ($Aus) Other +80 (X) -100 (M) Assume exporters purchase $30 Aus worth +50(F) of foreign assets -30(F) Eliminates excess CB Reserves 0 supply (demand) of +30 +50 -20 forex ($Aus) + 83%