Imbalance of payments will lead to changes in import and export trade, currency problems and changes in currency exchange rate, which will directly affect a country's economic development and people's living standards.

From these two aspects, namely, the balance of payments surplus and the balance of payments deficit.

Influence of balance of payments surplus

A country's balance of payments surplus will certainly increase its foreign exchange reserves and strengthen its external payments, but it will also have the following adverse effects:

1. The exchange rate of the domestic currency will generally rise, which is not conducive to the development of its export trade, thus aggravating the domestic unemployment problem.

2. Surplus increases the domestic gold and foreign exchange reserves, also increases the domestic money supply, and aggravates inflation.

This will also aggravate international friction. Because a country's balance of payments has a surplus, it means that the country's balance of payments has a deficit, which will lead to retaliatory measures.

For developing countries, the frequent balance of payments surplus is caused by excessive export, which means that the domestic available resources are reduced, which is not conducive to the economic development of developing countries.

Influence of balance of payments deficit

A country's balance of payments deficit will generally lead to the downward fluctuation of its currency exchange rate; If there is a serious trade deficit, the currency exchange rate will fall sharply. If the country's monetary authorities are unwilling to accept this consequence, it is necessary to intervene in the foreign exchange market, that is, sell foreign exchange and buy local currency. Foreign exchange reserves will be consumed, even leading to the exhaustion of foreign exchange reserves, thus seriously weakening its ability to pay abroad; On the other hand, there will be a domestic monetary tightening situation, and the interest rate will rise, which will affect the national economic growth, and the relative and absolute decline of unemployment and national income growth rate.

Judging from the specific reasons for the formation of the balance of payments deficit, if it is caused by the trade deficit, it will lead to an increase in domestic unemployment. If capital inflow exceeds capital outflow, it will cause domestic capital shortage, which will affect economic growth.