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Home » Forex Glossary » Balance of Payments (BOP)

Balance of Payments (BOP)

An account of payments and net transfers made between two countries. One of the two countries is named the “home country,” and the BOP is recorded from the viewpoint of that country. Both payments for goods and financial exports and imports are accounted for. If the BOP is consistently negative, this is generally interpreted as a lack of economic stability. If the BOP is consistently positive, the reverse is true.