International trade in goods and services on a balance of payments basis. Based on the Fifth Edition of the International Monetary Funds Balance of Payments Manual (BPM5, 1993). Goods comprises the largest category of transactions that involve changes of ownership between residents and non-residents. In addition to general merchandise, which covers most movable goods, the category includes: the movement of goods for processing, the value of repairs of goods and goods procured in ports by non-resident carriers. Current account records the values of the following: - trade balance - income payments and expenditure - unilateral transfers
Positive current account balance is when inflows from its components into the country exceed outflows of the capital leaving the country. Current account surplus may strengthen the demand for local currency. Persistent deficit may lead to a depreciation of a currency.