Theoretical and practical aspects of the relationship between the balance of the payment and the exchange rate

Elemesov R.Е., Khamzayeva A.V.

  • А. В. Хамзаева Al-Farabi Kazakh National University

Abstract

In the context of global economic integration increases the exchangeof goods and services, as well as increased capital flows between countries.As a result, formed and developed the international currency market,where the established exchange rates of various currencies. The transitionto floating exchange rates has caused the need for a radical revision ofviews on the balance of payments and the exchange rate, the nature of theirformation, and changes in, the relationship with other economic variables,methods of state and interstate regulation. Exchange rate changes have asignificant impact on the balance of trade and the movement of capital,which ultimately affects the state of the country’s balance of payments.The balance of payments is an important indicator and a tool to predictthe extent possible the country’s participation in world trade, internationaleconomic relations, to establish its solvency. Therefore, the relationship ofthe exchange rate and balance of payments is one of the most importantproblems of economic analysis, both theoretical and practical aspects.Key words: balance of payment, exchange rate, foreign trade, the devaluation(revaluation), depreciation (price hike).
Published
2018-11-05
How to Cite
ХАМЗАЕВА, А. В.. Theoretical and practical aspects of the relationship between the balance of the payment and the exchange rate. The Journal of Economic Research & Business Administration, [S.l.], v. 119, n. 1, p. 52-61, nov. 2018. ISSN 1563-0358. Available at: <http://be.kaznu.kz/index.php/math/article/view/2254>. Date accessed: 21 nov. 2018.