Calculate the country overall balance

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Reference no: EM132933963

You are provided with the following information about a country's international transactions during a given year (in millions):

Service exports $346

Service imports $354

Merchandise exports $480

Merchandise imports $348

Income flows, net $153

Gifts to foreigners $142

Increase in the country's holding of foreign assets, net $352

(excluding official reserves assets)

Increase in foreign holdings of the country's assets, net $252

(excluding official reserves assets)

Statistical discrepancy, net credit $154

Problem a) Calculate the current account balance and the country's overall balance.

Problem b) Is the country increasing or decreasing its net holdings of official reserve assets? Why?

Reference no: EM132933963

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