Matakuliah
Tahun
: Keuangan Internasional
: 2009
The Balance of Payments
Pertemuan 4
Off Class
Soal 1
• (Question 9)
What is the official settlements account of the
balance of payments ? How are official
settlements deficits and surpluses associated
with movements in the international reserves
of the balance of payments ?
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Jawaban Soal 1
The official settlements account records the purchases
and sales of the country’s international reserves. Just
as on the private sector’s capital account, if the central
bank increases its ownership of international reserves,
this is recorded as a debit, whereas a sale of
international reserves is a credit. Thus, if the official
settlements account is in surplus, the country is losing
international reserves.
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Soal 2
• (Problem 1)
Suppose that the following transactions take place on the U.S
balance of payments during a given year. Analyze the effects on
the merchandise trade balance, the international investment
income account, the current account, the capital account, and
the official settlements account :
a. Boeing, a U.S aerospace company, sells $ 3 billion of its 747
airplanes to the People’s Republic of China, which pays with
proceeds from a loan from a consortium of international banks
b. Nikko, a Japanese investment bank, purchases $ 70 million of 30
years U.S treasury bonds for one of its Japanese clients. Nikko
draws down its account with the First National Bank of Chicago
to pay for the bonds.
c. General Motors, a U.S automobile company, sends a dividend
check for $ 25,255 to a Canadian investor in Toronto. The
Canadian investor deposits the check in a U.S Dollar
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denominated bank account at the Bank of Montreal.
Soal 2
d. The U.S Treasury authorizes the New York Federal Reserves
Bank to intervene in the foreign exchange market. The New York
Fed purchases $ 5 billion with Japanese Yen and Euros that it
holds as international reserves
e. The President of the United States sends troops in a Latin
America country to establish a democratic government. The total
operation costs U.S taxpayers $ 8.5 billion. To show their
support for the operation, the governments of Mexico and Brazil
each donate $ 1 billion to the United States, which they raise by
selling U.S Treasury bonds that they were holding as
international reserves.
f. Honda of America, the U.S subsidiary of the Japanese automobile
manufacturer, obtains $ 275 million from its parent company in
Japan in the form of a loan to enable it to construct a new state
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of the art manufacturing facility in Ohio.
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Jawaban Soal 2
a. Boeing’s sale of planes is an export on the U.S. balance of payments, which is a
credit. The fact that China borrows from international banks means that foreign
ownership of U.S. assets is going down. This is a debit on the U.S. balance of
payments.
U.S. BOP
Sale of airplanes by a U.S. exporter to China
Credit
(Current account; U.S. goods export, trade balance)
$3 billion
Reduction of Ownership of U.S. assets by the Consortium
of International Banks(Capital account; U.S. Capital outflow)
Debit
$3 billion
The purchase of Treasury bonds by a foreign company is a
credit on the U.S. balance of payments just like an export of
goods is a credit. The reduction in Nikko’s bank account is a
reduction in foreign ownership of U.S. assets and is a
corresponding debit.
U.S. BOP
Credit
Debit
Nikko draws down its account with the
$70 million
First National Bank of Chicago
(Capital account; U.S. Capital outflow)
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University purchases U.S. Treasury bonds
Nikko
$70
(Capital account; U.S. Capital inflow)
million
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Jawaban Soal 2
c. The dividend check is a debit on the U.S. balance of payments because it is a payment to a
foreigner. The corresponding credit is the increase in foreign ownership of U.S. assets that
occurs when the dollars are deposited in the bank and not spent on goods or services in the
U.S.
U.S. BOP
Credit
Debit
Dividend check to a Canadian investor
$25,255
(Current account; dividend payout in international
investment account)
Canadian investor deposits the check in a U.S. dollar$25,255
denominated foreign bank account
(Capital account; U.S. Capital inflow)
d. When the New York Fed purchases $5 billion in the foreign exchange market, this is a
credit on the official settlements account of the U.S. balance of payments. The
corresponding debit is a reduction in the foreign ownership of U.S. assets.
U.S. BOP
Credit
Debit
$5 billion reduction in foreign holdings of U.S. assets
$5 billion
(Capital account; U.S. Capital outflow)
The New York Fed sells $5 billion worth of
$5 billion
international reserves
(Official Settlements Account; decline in foreign
reserves)
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Jawaban Soal 2
e. It is not entirely clear how much, if any, of the $8.5 billion of military expenditures would
be part of the balance of payments. Any expenditures on soldiers would not be, as the
soldiers are considered U.S. residents for balance of payments purposes. Any equipment
that was damaged or destroyed would also be U.S. equipment, and would not be part of the
U.S. balance of payments. Only purchases made in the Latin American country would be
imports. We assume these expenditures are zero, as we know how to deal with imports from
previous questions.
The $2 billion donations by Mexico and Brazil are unilateral transfers from foreigners,
which corresponds to an export of goodwill. The transfers are thus credits on the U.S.
balance of payments. The reduction in the ownership of U.S. assets by Mexico and Brazil
are the corresponding debits.
U.S. BOP
Credit
Debit
The governments of Mexico and Brazil each donate $1
$2 billion
billion to the United States
(Current account; Brazilian & Mexican donations)
Mexico & Brazil Sale of U.S. Treasury bonds
$2 billion
(Capital account, U.S. Capital outflow)
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Jawaban Soal 2
f. The loan is considered a credit on the U.S. balance of payments because foreigners are
increasing their ownership of U.S. assets. The reduction in the parent company’s ownership
of U.S. assets is a corresponding debit.
U.S. BOP
Credit
Debit
Honda’s American Subsidiary obtains a foreign loan $275 million
(Capital account; U.S. Capital inflow)
Reduction in Honda Japan’s ownership of U.S. assets
$275 million
(Capital account; U.S. Capital outflow)
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Soal 3
• Home Work
Mahasiswa melakukan analisa terhadap Balance of
Payment Republik Indonesia untuk posisi yang terbaru
(triwulan terakhir) dan menyusun laporan analisa tsb.
http://www.bi.go.id/web/id/Publikasi/Neraca+Pembayara
n+Indonesia/
Tugas ini dikumpulkan sebelum perkuliahan pertemuan
berikutnya dimulai.
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