Current Account of the Balance of Payments

The balance of payments is a record of all the money flowing into and out of a country in its dealings with the rest of the world over a period. Its most-tested part is the current account, which records flows arising from trade, income and transfers.

A flow that brings money into the country (an export, income earned abroad, money sent home) is a credit. A flow that takes money out (an import, income paid abroad, money sent overseas) is a debit.