Balance of Payments
You should write the blog about the following:
Many countries run large deficits in one or more of the major components in their Balance of Payments. Yet, they do not suffer currency crashes. It is likely that their currency depreciates over time against their major trading partners’ currency or stays the same or even appreciates.
Your task is to select an emerging economy or frontier economy that uses its own floating currency issued by its own Central Bank (do not select a country that uses a common currency, like the Euro), and
(i) briefly review the performance of the currency against its major trading partner(s) in the last few years in the first part of the blog, and
(ii) speculate about the future currency movement against the major trading partners’ currency(ies) in the short term in the second part of the blog.
You will access the list of emerging countries and frontier countries from the following site:
You can access Balance of Payments data on this site:
You are welcome to consult any other source freely accessible on the internet.
A graph or table showing the main Balance of Payments data you used and an exchange rate chart against the currency of the major trading partner(s) as part of the submission (outside the word count) are expected.
