Critical macroeconomic indicators of an economy

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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.

Reference no: EM132554453

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