In macroeconomics and international finance, the capital account, also known as the capital and financial account, records the net flow of investment into an economy. It is one of the two primary components of the balance of payments, the other being the current account. Whereas the current account reflects a nation's net income, the capital account reflects net change in ownership of national assets.
The International Finance Centre in Hong Kong, where many capital account transactions are processed.
In international economics, the balance of payments of a country is the difference between all money flowing into the country in a particular period of time and the outflow of money to the rest of the world. In other words, it is economic transactions between countries during a period of time. These financial transactions are made by individuals, firms and government bodies to compare receipts and payments arising out of trade of goods and services.
Gold was the primary reserve asset during the gold standard era.
Manmohan Singh, former PM of India (2004-2014), showed that the challenges caused by imbalances can be an opportunity when he led his country's successful economic reform programme after the 1991 crisis, as the minister of Finance.
The US dollar has been the leading reserve asset since the end of the gold standard.
