I'm trying to look at the balance of payments and whether or not a given entry is a debit or a credit in terms of the money flow. Is there an easy way to tell which it is?
We know BOP = CAB + CA +FA + BI where
CAB = current account balance CA = capital account FA = financial account BI = balancing item BOP = Balance of payments.
For example looking at Russia 1994 it has the following info (Millions of dollars) in the Balance of Payments file on their website.
The current and capital account balance = 10,369.
Net error = -342
Net lending (+) / net borrowing (-) (Balance from financial account) = 10,027
I am not sure of the balance from the financial account is classified as a debt or a credit. Since the figure is a positive I guess this corresponds to net lending. But if I take this as a negative figure and sum the current and capital account balance I get +342?