THE LEVEL OF THE EXCHANGE RATE AND THE BALANCE OF PAYMENTS, RELATIONS AND INFLUENCES

Abstract

The level of the exchange rate depends not only on the internal or externalpurchasing power, but also on other factors, and the element that synthesizes best theinfluence of these factors is the balance of payments, more precisely it’s position, because themain influential factors of the exchange rate can be found synthesized in the balance ofpayments ââ¬â evolution of imports and exports, capital flows under the form of directinvestments or portfolio investments, etc. Because of the conception form of the balance ofpayments, it offers an easy way of reporting the economic course.balance of payments, current account, capital account, exchange rate.