international payments

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Payments made between residents of different countries, or between residents and international bodies. These include payments for exports of goods and services, payment of property incomes, and international transfers or gifts; these are current account transactions. They also include sales and purchases of securities, and making and repayment of loans, which are capital account transactions; and transfers of foreign exchange reserves between central banks and governments. International payments may be made in a country's own currency if foreigners are willing to hold it; in a national currency acceptable to both parties, such as the Euro or the US dollar; or in an international money, such as special drawing rights issued by the International Monetary Fund.

Subjects: Economics.

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