Understanding Balance of Payments: Insights from Economic Journalists Workshop Series
Explore the concept of balance of payments, a crucial economic indicator tracking a country's financial transactions with the world. Delve into the current and capital accounts, and learn from real-world examples showcasing balance of payments fluctuations in countries like the Philippines and Turkey.
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SBP Economic Journalists Workshop Series SBP Economic Journalists Workshop Series Covering Balance of Payments Naween A. Mangi
What is Balance of Payments What is Balance of Payments A record of all funds going out of and coming into a country
Understanding the Current Account Understanding the Current Account https://www.khanacademy.org/economics-finance- domain/macroeconomics/forex-trade-topic/modal/v/balance-of- payments-current-account
Understanding the Capital Account Understanding the Capital Account https://www.khanacademy.org/economics-finance- domain/macroeconomics/forex-trade-topic/modal/v/balance-of- payments-capital-account https://www.khanacademy.org/economics-finance- domain/macroeconomics/forex-trade-topic/modal/v/why-current- and-capital-accounts-net-out
Stories in the Press Stories in the Press Balance of payments swings to $2.7B deficit in September (BusinessWorld Oct. 19, 2018) The Philippines balance of payments (BoP) position swung to a $2.696 billion deficit last month, reversing the $1.272 billion surplus in August and the narrow $24 million surfeit in September 2017. The BoP measures the country s transactions with the rest of the world at a given time. A deficit means more funds fled the economy than what went in, while a surplus shows that more money entered the Philippines. The September tally is the widest gap since a $4.48-billion deficit in January 2014, when foreign funds fled emerging markets during the taper tantrum as the United States Federal Reserve decided to trim its bond- buying program starting that year.
Stories in the Press Stories in the Press Turkey's current account balance posts surplus in Sept. Turkey's current account balance showed a surplus in September for the second consecutive month this year, the Turkish Central Bank (CBRT) announced on Monday. According to the CBRT's balance of payments report, the country's current account surplus totaled $1.83 billion in September, improving from last year's deficit of $4.4 billion. In the previous month, the balance posted a surplus for the first time over the past three years with a $1.86-billion surplus. Monday's figures also met expectations, as an Anadolu Agency survey on Friday showed that a group of 19 economists had forecast a surplus of $1.97 billion on average.
Stories in the Press Stories in the Press Pakistan's immediate balance of payments crisis is over: finance minister (Dawn.comUpdated November 06, 2018) Finance Minister Asad Umar on Tuesday claimed that Pakistan's "balance of payments crisis is over" and assured that China is committed to providing short- term relief to Pakistan as well the modalities of which, he said, will be discussed in a new round of discussions in Beijing on Friday. "The long-term solution to the balance of payments crisis is to increase our exports, and to do that we should have enough income so that we do not need to borrow," Umar, who was a part of the Prime Minister Imran Khan-led delegation that visited China recently, explained during a press conference today. "In this regard, we have received a commitment from the highest level.
Guide to Covering Economic Stories Guide to Covering Economic Stories Myth: You need formal economic training to do great stories on the economy beat Economy stories are essentially stories about issues that affect our daily lives Avoid dense technicalities Report and interpret data for a lay audience Give local flavor to big economy stories Ask yourself how does this affect an average family; what in here can they relate to
Guide to Covering Economic Stories Guide to Covering Economic Stories Focus on what s happening: as told through data or through developments Focus on the outlook: what s likely to happen next Illustrate economic trends by putting names on numbers Look at developments in economic policy Focus on the people behind the stories Think about conceptual scoops: spot trends in economic data before anyone else does, speak to experts and stakeholders and tell a story about what those trends mean for people and the economy
How to Find Stories from Numbers How to Find Stories from Numbers Headline economic data numbers are covered in flash news Issue is how to go beyond those headline numbers Go regional or local: use that sub data as the basis for a story Get reactions from stakeholders Do preview/curtain raiser stories on what s expected Economy stories are actually company stories writ large Ask questions based on the themes: Are local businesses finding overseas markets for their products? Are local businesses losing out to imported goods?
Balance of Payments Stories Balance of Payments Stories Exports Imports Trade Balances Foreign Investment direct and portfolio Home Remittances (& overseas employment) Foreign Exchange Reserves Home Nationals Acquiring Foreign Assets real estate, stocks, etc
Factors That Impact Factors That Impact BoP BoP to Follow for Stories to Follow for Stories Currency valuation Country image Commodity/energy prices Policies that affect exports e.g. amendments in incentives Policies that affect imports e.g. amendments in duty structure Domestic demand Global demand
Group Assignment Group Assignment Form groups of three Come up with a story idea you could pitch today relating to Pakistan s balance of payments Use any of the aspects of BoP we have discussed in class Make sure your story idea has the following: What s the story about? Sum it up in one sentence. Why are you writing about this now? i.e. what s the news peg? How will you make this story clear to a lay audience? Who will you speak to? i.e. a sourcing plan What s the nut graf or the essence of the story?
