1. Describes the Balance of Payments (BOP) accounts.

2. Discuss the contrast between major countries such as US having a current account deficit and a capital account surplus, versus China enjoying ‘twin surpluses.’ The official reserves and surpluses for any country’s central bank (with the exception of US) are held in ‘hard currencies’ as well as gold and are normally placed in ‘trust-worthy and dependable’ banks outside that country, and to be used for international transactions and payments.

3. Discuss how the international monetary system faces challenges by these imposed sanctions on the official reserves of Russia for its Ukraine invasion. Will other countries discontinue placing their official reserves abroad, and what alternatives do they have. Discuss the challenges international trade and finance faces, as countries attempt to circumvent sanctions by engaging in non-US dollar denominated transactions.