Diplomacy & Politics Glossary

A record of all economic transactions between residents of a country and the rest of the world over a period.

The capital account records cross-border transfers of ownership of assets, including investments, loans, and banking flows.

The process of removing restrictions on capital flows into and out of a country to encourage investment and financial integration.

Measures that reduce or restructure the debt burden of developing countries to improve repayment capacity.

An assessment of a country’s ability to service its debt without external assistance or default.

A financial arrangement where a country's external debt is exchanged for equity stakes in domestic companies.

The price of one country's currency expressed in terms of another's, affecting trade and investment flows.

An international organization providing financial support and advice to countries facing balance of payments problems.

An index measuring a currency’s value relative to a weighted average of several foreign currencies without adjusting for price differences.

International reserve assets created by the IMF to supplement member countries’ official reserves and provide liquidity.

International reserve assets created by the IMF to supplement member countries’ official reserves and provide liquidity.

An international institution that offers loans and development assistance to reduce poverty and support development projects.