The Compilation Principles of the Balance of Payments

The balance of payments is based on certain principles derived from its purpose, which is to consider foreign trade operations. The economic operation is considered to be a foreign one, if it is carried out between the economy of a particular country and the economies of the rest of the world. Economic transactions that take place between residents and non-residents cover the dealings, the subject of which are goods, services, incomes, external financial assets and liabilities.

Economic transactions, by the definition of IMF, are the economic flows that reflect the transfer of real resources (transactions in goods, services and income), and the creation, liquidation of foreign financial asset or liability and / or the transfer of ownership to the existing external financial asset and liability (transactions with external financial assets and liabilities).

The economic entity ( the economic unit), the center of economic interest of which is in the economic territory of the country, is a resident of that country. The economic entity has a center of economic interest in a country, if it has already engaged in economic activities and transactions on a significant scale in the country for one year or more, or if the unit intends to do so. The establishment of resident units is crucial in terms of registration and classification