thaidating com - Accomadating

That is, a central bank makes accommodating transactions when a country's balance of payments has become too positive or too negative and is therefore putting pressure on exchange rates.

The accommodating transactions are not made for purposes of profit, but instead to help bring equilibrium to a country's currency.

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It is certainly reasonable to use this strategy when the issue at hand is something of little importance to you.

If you are trying to pick a movie to watch, and you really don't care, it's fine to say 'Whatever you want is ok with me'.

Economical Distinction between Autonomous and Accommodating Items in BOP Account!

Economists distinguish between autonomous and accommodating items used in BOP.

These items are generally called ‘above the line items’ in BOP Again, it is autonomous transactions which make deficit or surplus in BOP.

BOP is in deficit if the autonomous receipts are less than autonomous payments.

They have nothing to do with foreign exchange payments.

Since such transactions are independent of the state of country’s balance of payment, i.e., irrespective of whether BOP is favourable or unfavourable, they are, therefore, called autonomous items.

The basic difference between the two is that whereas deficit or surplus in BOP occurs due to autonomous items, the accommodating items are taken to cover deficit (or surplus) in autonomous transactions.

These refer to international economic transactions that take place due to some economic motives like earning income and profit maximisation.

The official settlement approach is based on the assumption that monetary authority is the ultimate financier of any deficit in BOP or the ultimate recipient of any surplus.

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