The balance of payment is
current account + financial account + reserve = 0.
Well, what if the national receives some gift money, for example, international relief for some demostic disaster, I guess your financial account will go up? But then there is nothing to offset it right? For you just receive it for free, how can you balance of payment stil be 0 in this case?
current account + financial account + reserve = 0.
Well, what if the national receives some gift money, for example, international relief for some demostic disaster, I guess your financial account will go up? But then there is nothing to offset it right? For you just receive it for free, how can you balance of payment stil be 0 in this case?