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Domenic was tasked to prepare the balance of payments for Kazi Plc. the details are shown below: Exports 1.1 billion Imports 1.8 billions Export of

Domenic was tasked to prepare the balance of payments for Kazi Plc. the details are shown below:

Exports 1.1 billion

Imports 1.8 billions

Export of services 0.9 billion

Import of services 2.2 billion

Portfolio investments by residents 0.9 billion

Portfolio investments by foreigners 1.3 billion

Foreign direct investments by nonresidents 1.0 billion

Foreign direct investments by residents 0.7 billion

Unilateral payments by resident workers abroad 0.4 billion

Unilateral payments by foreigners working in the country 0.6 billion

Interest and dividends received by residents 0.2 billion

Interest and dividends paid to non- residents 0.5 billion

Loans received by the country 1.1 billion

Grants received by the country 0.7 billion

Required:

  1. Prepare balance of trade
  2. Prepare balance of payments.
  3. Explain the implications of the above statements on the exchange rate of the country

Suggest interventions that can reverse weakening (depreciating) domestic currency.

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