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How should you view a balance of payments deficit?The balance of payments is a double-entry accounting ... is particularly sensitive to exchange rate fluctuations. This often results in short-term deficits or surpluses from excess payments ...
This view was predicated on reasonable balance of payments and real exchange rate calculations that seemed to imply that a 50 percent devaluation, in real terms, was more than enough. Therefore, if we ...
A balance of payments crisis is a broader concept that involves a shortage ... Furthermore, although most of the theoretical literature concentrates on attacks against a pegged exchange rate regime, ...
Pakistan’s external sector is under severe strain, with a persistent balance of payments crisis driven by chronic trade deficits, external debt pressures, and a volatile exchange rate.
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