Reference no: EM132554453
You have been given following data of country X relating to the year 2015.
Item Rs.
Exports 1,453,176
Imports 2,535,163
Services receipts 731,863
Services payments 486,367
Net primary income (240,065)
Net secondary income 813,128
Financial account 252,409
(i) Comment on the country X's balance of payment position based on the trade and current account balance.
(ii) Why trade balance and current account balance are more critical macroeconomic indicators of an economy
(iii) Exchange rates for the last 6 months of 2015, of the country X were Rs 98.50, 99.75, 99.85, 100.55, 101, 102.50. Identify the impact of exchange rate behavior on the balance of payments of country X.