Autonomous and accommodating transaction

27-Oct-2020 08:04

These are also known as ‘above the line items’ and take place in both the accounts of Bo P, i.e. These are undertaken to maintain balance in the Bo P account.

BOP is in deficit when autonomous receipts are less than autonomous payments.These items are also known as ‘above the line items’.Autonomous transactions are independent of the state of BOP account.These refer to transactions that take place to cover deficit (or surplus) arising from autonomous transactions.

These items are also called ‘below the line items’.

Therefore, those items relating to international economic transaction which are motivated by profit consideration are autonomous item such as import and export of goods and services and inflow and outflow of capita items.