وریښم

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Balance of payments and external value of money
When talking about the external value of money, it is also mentioned from the balance of payments. It is said that if a country’s balance of payments is positive, the external value of money is relatively high, and if the balance of payments is negative, then the external value of money is relatively low, or if the balance of payments becomes positive, the external value of money increases, and if When it becomes negative, the external value of money falls. Now, in order to understand the relationship between the balance of payments and the external value of money, we must first understand the balance of payments and then discuss its relationship with the external value of money.

Balance of Payments: The balance of payments is a record of all the economic activities that take place between the host country (individuals, companies and government) and the rest of the world (individuals, companies and governments) or the balance of payments of the host country. It is a unit of measurement of economic activities between the country and other countries.

The balance of payments shows how much money a country sends to other countries of the world in a certain period of time and how much money other countries bring to the host country in the same period. If the amount of money that is taken from the host country to other countries is less than the amount of money that was brought to the host country by other countries, the balance of payments is called a surplus, and if the amount of money that is sent from the host country is The amount of money sent to other countries by the country is greater than the amount of money that is brought to the host country by other countries. He considers it a state of equilibrium.

Remittance of domestic currency and remittance of foreign currency to the host country is possible in the following cases:

First: Export and import of goods and services:

If the host country exports domestic goods and services to other countries, citizens, companies or governments of other countries buy domestic goods and commodities with foreign currency, which brings foreign money to the host country and is considered as income of the host country, and if the host country Foreign goods and services are imported, the citizens, companies or government of the host country buy foreign goods and commodities with domestic money, with which the domestic money is taken to foreign countries and is considered as consumption of the host country. For example, an Afghan merchant imports tea from China. In order to import tea, the merchant is obliged to first buy Chinese money and then buy Chinese tea with Chinese money and import it to his country. Rasa did not buy tea with Afghanis, but basically, if Afghanis are not paid in the foreign exchange market, Afghan traders can never buy Chinese tea, that is, Afghan traders are forced to pay Afghanis to buy Chinese products, and money as well. The payment is called the transfer of money from the host country to the country of China, and in this way, if a Chinese citizen buys something from our country (the host country), then Chinese money is brought to our country.

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