Account Deficit
A negative balance of trade or payments, where a country’s imports and outgoing payments exceed its exports and incoming payments.
Related terms
Deficit
When more money is spent than received, whether in imports versus exports, expenses versus revenues, or liabilities versus assets. Governments may intentionally run deficits to lift countries out of recession or create future economic growth.
Read full definitionCurrent Account
A record of a nation’s global transactions, covering imports and exports of goods and services, payments to and from investments abroad, and transfers such as foreign aid and remittances. Together with the capital account, it makes up a nation’s balance of payments.
Read full definitionTrade Balance
The difference in value between a nation’s imported and exported goods and services. Countries with trade surpluses, such as Japan, tend to see their currencies appreciate, while countries with deficits, such as the US, tend to see theirs weaken.
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Asian Central Banks
The monetary authorities of Asian countries. They have become increasingly active in major currencies as they manage growing pools of foreign currency reserves arising from trade surpluses, and their market interest can influence currency direction in the short term.
Read full definitionBank for International Settlements (BIS)
A global financial institution owned by central banks, based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City. Its original members were Switzerland, Germany, Belgium, France, Britain, Italy, the United States and Japan.
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One of China’s four largest state-owned commercial banks. It maintains close relations with the People’s Bank of China in management, administration and cooperation across several areas.
Read full definitionBank of England (BoE)
The central bank of the United Kingdom, acting as the government’s bank and lender of last resort. Headquartered in the City of London, it issues currency and oversees monetary policy, making it the UK equivalent of the US Federal Reserve.
Read full definitionBase Rate
The interest rate a central bank, such as the Bank of England or Federal Reserve, charges to lend money to commercial banks. Adjusting the base rate helps a central bank regulate the economy by encouraging or discouraging spending as required.
Read full definitionBRC Shop Price Index
A UK price indicator from the British Retail Consortium, a trade association of around 170 retail members, tracking changes in the prices of goods sold in shops.
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