Question
The following figures represent a summary of Zambias preliminary Balance Of Payments Transactions [in US $' million, F.O.B] for the year 2016. Copper Exports
The following figures represent a summary of Zambia’s preliminary Balance Of Payments Transactions [in US $' million, F.O.B] for the year 2016.
Copper Exports …………………………………… 4,399.1
Cobalt Exports ……………………………………. 112.9
Non Traditional Exports ………………………….. 1,740.1
Gold Exports……………………………………….. 191.2
Total Merchandise imports ……………………… 6,538.5
Transportation Services (Net) …………………… (830.9)
Travel Services (Net) ……………………………. 435.2
Insurance and Pension Services (Net) …………. (112.8)
Investment income (Net) …………………………. (277.6)
Capital Account Transactions ……………………. 55.0
Direct Foreign Investment …………………………1,694.9
Portfolio investment (Net) ………………………… 359.7
Other investments (Net) ………………………….(1,485.7)
Financial derivatives (Net) ………………………. (15.3)
Increase in IMF Liabilities ………………………… 62.1
Increase in Other External Liabilities ……………. 187.6
Net Errors and Omissions ………………………... 22.7
Source: Bank of Zambia Annual Report 2016.
Required:
A) Draw up the Balance Of Payments Account from the above transactions clearly separating the Current Account from the Financial and Capital Account transactions, then calculate and write down the following balances:
I) The Merchandise Exports Balance
II) The Merchandise Trade Balance
III) The Services Trade Balance
IV) The Total Invisibles Balance
V) The Current Account Balance
VI) The Capital And Financial Account Balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
I Merchandise exports ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started