(d) Along with non-central bank transactions, the accounts would show an increase in foreign official reserve assets held in Pecunia of $600 million (a financial account credit, or inflow) and an increase Pecunian official reserve assets held abroad of $100 million (a financial account debit, or outflow).
The rationale is that the transactions result in foreign payments to the Pecunians who sell the assets. Purchases of Pecunian assets by foreign central banks enter their countries’ balance of payments accounts as outflows, which are debit items. The balance of payments is still –500 million, but this is now comprised of 600 million in foreign Central Banks purchasing Pecunia assets and 100 million of Pecunia’s Central Bank purchasing foreign assets, as opposed to Pecunia selling 500 million in assets. The Pecunian central bank must, therefore, have used the extra$100 million in foreign borrowing to increase its reserves. Put another way, the country needed only $1 billion to cover its current-account deficit, but $1.1 billion flowed into the country (500 million private and600 million from foreign central banks). (c) If foreign official capital inflows to Pecunia were $600 million, the Central Bank now increased its foreign assets by $100 million. Thus, Pecunia’s central bank lost $500 million in reserves, which would appear as an official financial inflow (of the same magnitude) in the country’s balance of payments accounts. Dazu Sehenswertes wie Skulpturen, historische Bauwerke, Kirchen, Friedhöfe, besondere Gebäude und Architektur. Only if foreign central banks had acquired Pecunian assets could the Pecunian central bank have avoided using$500 million in reserves to complete the financing of the current account. Berlins Sehenswürdigkeiten, Schlösser und Denkmäler mit Adresse, Informationen und Verkehrsverbindung. (b) By dipping into its foreign reserves, the central bank of Pecunia financed the portion of the country’s current-account deficit not covered by private financial inflows. The country as a whole somehow had to finance its $1 billion current-account deficit, so Pecunia’s net foreign assets fell by $1 billion. (a) Since non-central bank financial inflows fell short of the current-account deficit by $500 million, the balance of payments of Pecunia (official settlements balance) was –$500 million.
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