According to the IMF Balance of Payments Manual, the balance of payments is a
statistical statement, for a given time period, systematically summarizing the economic
transactions of an economy with the rest of the world. Transactions, for the most part
between residents (banks and non-banks) and non-residents, consist firstly of those
involving goods, services, and income, and those classified as transfers (such as gifts).
These transactions are summarized by the current account. Secondly, transactions consist
of those involving financial claims on, and liabilities to the rest of the world. This
concerns capital transactions of non-banks and of the banking sector as well as changes in
the official reserves.
