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In the accounting records of balance of payments, the credit of reserve assets is 0 and the debit is positive. A negative balance indicates an increase in reserve assets. Why is the balance negative?
The reasons for this difference are: surplus and deficit. Only when there is a surplus and a deficit can the balance of payments be achieved.

Division of balance of payments items:

* * * Divided into four categories: current account, capital account and financial account, changes in reserve assets and net errors and omissions.

1. Current account includes goods trade item, service trade item, income item and current transfer.

2. The capital account records the transfer of capital nature and the one-time sale of assets such as patents, copyrights and trademarks. Financial projects include direct investment, securities investment and other investments.

3. Reserve assets refer to financial assets that are held by the central bank or the financial department and can be directly used at any time.

4. The net error and omission are mainly the difference between the total debit and credit in the balance of payments.

Calculation formula of balance of payments

1. Total balance of payments = current account balance+capital and financial account balance+net errors and omissions.

2. Total balance of payments+changes in reserve assets =0.

3. Difference = credit number minus debit number.