Balancing payments

Description

Balancing payments involves implementing measures to ensure a country's international financial transactions—exports, imports, capital flows—are in equilibrium, preventing persistent deficits or surpluses. The strategy focuses on practical actions such as adjusting exchange rates, controlling imports, promoting exports, and managing foreign reserves. Its core purpose is to maintain economic stability, safeguard currency value, and remedy imbalances that could lead to debt crises, inflation, or loss of investor confidence.