The balance of payments surplus indicates a net inflow in the current account and the capital account.

Current account includes trade in goods and services, unilateral transfer, etc.

Taking the trade in goods as an example, the current account surplus shows the country's exports. Import. Foreign imports of domestic goods need to be paid in domestic currency instead of foreign currency, which will lead to an increase in the demand for domestic currency (this is obvious, because export enterprises will eventually have to pay employees all kinds of wages, repay loans, etc., and cannot always pay employees' foreign currency wages, and eventually they will have to change into local currency).

Capital account includes the purchase and sale of various financial assets.

Taking stock purchase as an example, the capital account surplus shows domestic capital inflow >; Outflow, foreign investors want to buy their own stocks, they have to change foreign currency into local currency to buy them, which will also increase the demand for local currency.

Finally, on the whole, because the balance of payments is surplus rather than zero, the supply and demand side is surplus, and the landlord's problem refers to the excess demand for money.

I wonder if this is clear.

Hope to adopt! I wish you progress in your study. O(∩_∩)O~