Balance of Payments (BOP)

The Balance of Payments (BOP) is a comprehensive record that shows all the economic transactions between a country and the rest of the world over a specific period. It includes exports and imports of goods and services, financial investments, and money transfers. Think of it as a country's financial diary, tracking what it earns from selling abroad and what it spends on foreign goods or investments. A balanced BOP means inflows (money coming in) and outflows (money going out) match, indicating a stable economy, while imbalances can signal economic issues or opportunities.