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In the macroeconomics theory we addmit that the balance of payements is Always balanced to 0. However I don t understand why a country that pays his importation with his saving would need external financing?
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BOP sheet me foreign exchange (currency) Ke inflow aur outflow ko dikhaya jata he but jb rbi dollars sale kerta he to dollar reserve se outflow hota he yani dabit Side me jayega. Per aap yaha rupee ke inflow ko consider kerke use credit side bta rahi he. ME bhut Confuse ho gya hu
Actually she meant that the when We withdraw foreign exchange reserve (dollar in your case ) we sell it and their is inflow of rupee (our domestic currency ) which will be taken on the positive side....because here we are selling a financial asset .....but in exchange there is inflow of money.....in exchange of dollar also we r getting rupee na ....so that's y it is considered in the positive side
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