Balance of Payments and External Sector Analysis: A Comprehensive Training Course

Introduction

The balance of payments (BOP) is a vital accounting statement that provides a detailed picture of a country's economic transactions with the rest of the world. This training course is designed to provide policymakers and analysts with a comprehensive understanding of the BOP and its components, from the current and capital accounts to the financial account. Participants will learn how to interpret these data to assess a country's external position, identify potential vulnerabilities, and understand the drivers of currency movements and international reserve accumulation.

The program also focuses on the crucial link between external sector dynamics and domestic macroeconomic policy. We will examine how a country's external position influences its monetary policy choices, fiscal sustainability, and overall financial stability. By combining a deep dive into the theoretical and empirical aspects of external sector analysis with practical case studies, this course will equip participants with the skills necessary to monitor external risks, formulate appropriate policy responses, and contribute to a more robust and sustainable economic framework.

Target Audience

  • Central bank research and policy staff
  • Government finance and planning officials
  • International financial institution staff
  • Academics and students of international finance
  • Financial market analysts and strategists
  • Regulatory and supervisory authorities
  • Public sector debt managers
  • Financial journalists

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the structure and components of the balance of payments.
  • Analyze a country's external position and identify potential vulnerabilities.
  • Describe the relationship between the BOP and macroeconomic policy.
  • Evaluate the drivers of capital flows and their impact on the BOP.
  • Discuss the role of exchange rates and international reserves.
  • Apply analytical techniques to assess external sector sustainability.

Modules Course Content

Module 1: The Foundations of the Balance of Payments

  • Defining the balance of payments and its components
  • The current account and its sub-components
  • The capital account and the financial account
  • The relationship between the BOP and the national accounts
  • The importance of data and measurement

Module 2: The Current Account

  • The role of trade in goods and services
  • The components of the primary income account
  • The components of the secondary income account
  • The drivers of a current account surplus or deficit
  • The link between the current account and domestic saving and investment

Module 3: The Financial Account and Capital Flows

  • The components of the financial account
  • Foreign direct investment (FDI)
  • Portfolio investment and other investment
  • The drivers of cross-border capital flows
  • The role of central banks and reserves

Module 4: Exchange Rates and the BOP

  • The relationship between the BOP and exchange rates
  • The role of supply and demand for foreign currency
  • The impact of a current account deficit on the exchange rate
  • The role of central bank intervention
  • The challenges of a floating exchange rate

Module 5: International Reserves

  • The purpose of international reserves
  • The composition of reserves
  • The challenges of reserve management
  • The link between reserves and financial stability
  • The use of reserves to manage a crisis

Module 6: External Debt and Sustainability

  • The different types of external debt
  • The role of public and private external debt
  • The assessment of debt sustainability
  • The causes and consequences of an external debt crisis
  • The role of the International Monetary Fund (IMF)

Module 7: The Policy Toolkit

  • The use of monetary policy to manage the external sector
  • The use of fiscal policy to manage the external sector
  • The role of macroprudential policy
  • The challenges of capital controls
  • The role of international cooperation

Module 8: External Sector Vulnerabilities

  • The identification of external vulnerabilities
  • The role of early warning indicators
  • The challenges of forecasting a crisis
  • The impact of global shocks on a country's external position
  • The importance of a resilient external sector

Module 9: Regional and Global Integration

  • The role of regional trade agreements
  • The challenges of a monetary union
  • The impact of a global financial cycle
  • The role of global trade and supply chains
  • The future of globalization

Module 10: Case Studies and Current Debates

  • The Asian Financial Crisis
  • The Global Financial Crisis of 2008
  • The challenges for emerging market economies
  • The debate over capital controls
  • The future of the international monetary system

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

Balance Of Payments And External Sector Analysis: A Comprehensive Training Course in Kenya
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