Balance of Payments

Financial summary of all international transactions.
The Bureau of Economic Analysis (BEA) under the U.S. Department of Commerce records transactions involving the international transfer of goods, services, income, financial claims, or gifts. Used as an indicator of the flow of goods and services between the United States and other parts of the world, the strength of the balance of payments affects the credit standing of the federal government. The stronger the financial statistics, the better the nation’s position.
The transfer of goods and services—or unilateral transfers—is recorded in the current account; the capital account consists of the transfer of financial assets and liabilities.Using the traditional accounting method of double-entry record keeping, entries are recorded in a manner in which the debits and credits always balance.When recording the balance of payments for the United States, the BEA includes all transactions for the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, Midway Island, the Virgin Islands,Wake Island, and all other U.S. territories and possessions (Marshall Islands, Federated States of Micronesia, Northern Marianas, and Palau). Under the terms of the Bretton Woods agreement signed in 1945, section 8, the U.S. government has the legal authority to collect the data on the balance of payments. The Office of Management and Budget publishes the balance of payments report on a quarterly basis ten weeks after the end of each quarter. The International Monetary Fund uses the information provided by the BEA to establish currency conversion rates.

References
Bureau of Economic Analysis. Balance of Payments of the United States: Concepts, Data Sources, and Estimating Procedures.Washington, DC: U.S. Government Printing Office, 1990.
See also: Trade Policy.