WELLCOME

Group Member
Mayur
Sunny
Vicky

Measures of Correcting Disequilibrium in

Balance of Payments

What is measure for correcting

disequilibrium in BOP ?
When a country is facing fundamental

disequilibrium in its Balance of Payment

the government authority of that country
will have to take certain drastic and
delibrate measure for correcting

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Tow Types
Monetary
Deflation
Depreciation
Devaluation

Non Monetary
Import Quota
Export Promotion
Import Subsitiution

Exchange Control

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Deflation
Deflation is a policy which aim at a

leadership of income and expenditure and so

the import capacity of domestic people.
It can also by fiscal policy this more

monetary and fiscal policy can brief about

defasionary on economy which will help in
reducing expenditure and economy export.
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Depreciation
Depreciation implies a decline in the rate of

exchange of one currency in term of other

currency supposed the rate of exchange
between Indian rupee and US dollar 1$ =
10rs if exprence is and advers balance of
payment with regard to america.

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Devaluation
Devaluation of currency of external value

of a home currency in terms of other

currency and hold by the government
authority

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Exchange Control
Exchange control is an organised system of

regular or transaction dealing with foreign

exchange
through
the
government
intervation.
Under it a complete government control is

established over the foreign exchange

market the expoter are ask to surrender all
the foreign currency obtain by them.

Non Monetary
Import Duties Quato
Import duties are the taxes levy on those commodities the

import of which are to be restricted as imposition of duties

raies their price demand decline .
In this government fixed the maximum quantity of
commodity to be imported during a given period of time

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Export promotion
An export promotion programme includes subsides tax

consison to the export insentive for export, marketing

facikites.
These are the measure under export promotion which

government may adopted to correct desieqilibirum in the

Balance Of Payment

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Import Substitution
Industries produce import substitute may be

include and encourage by a defict country

to check the imports needs and there to
reduce the quantum of imports.

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Balance of Payment
The Balance of Payments shows a countries

transactions with the rest of the world. It notes

inflows and outflows of MONEY and
categorises them into different sections. The
different sections of the Balance of Payments
are:

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 The Balance of Payments Account consists

of two parts:

(i) A current account

(ii) A capital (and financial) account

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Thank you

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