Given the following information show the country's BoP position.

Exports of goods45

Imports of goods35

Exports of services 20

Import of services28

Income earned by foreigners on local investments 25

Income earned by locals on foreign investments38

Transfers by foreigners outside the country43

Transfers by locals into the country64

Balance on capital account 10

Foreign purchases of local assets 20

Locals purchases of foreign assets 65

Foreign Direct Investment (FDI)12

Foreigners purchase of local stocks, real estate and bonds 18

and private company shares

Locals purchase of foreign stocks, real estate and private36

company shares

b)Using a graph represent and explain the above position.

c)What direction is the exchange rate likely to take assuming a flexible exchange rate regime.