Documentry Letters of Credit & Balance of payment in Libya
During crises, wars Can foreign trade be affected and to what extent .
The documentary credits is focus of the top traders of wars and crises
The important question is how to handle the assets and international norms of force majeure problems.
It can not be disavowed laws to protect the rights of the parties to the relationship in the business process .
The balance of payments of the state, which measures trade of the country during the year shows the clear impact of the crisis
The question is how to treat the disorder in the balance of payment without finding a solution to the problems of foreign trade, which is considered documentary letters of credits one of the most important pillars.
The existence of an imbalance in the balance of payments is one of the most important economic indicators are a danger to the national economy in relation to the status of that country in international economic transactions, particularly in the event of a deficit in the said balance and knead it public authorities usually intervene in order to bring balance in the balance whenever possible knead, which usually requires a period of several years and using a set of economic measures on condition of inflicting the national economy badly damaged
There is a close relationship between the balance of payments and the currency exchange rate of the country. If the exchange rate of the currency of a country larger than the real value, the rules of engagement will lead to higher prices for commodities the same country from a foreign eyes, leading to lower external demand and thus the rules of engagement will lead to a disruption in Balance of Payments.
If either were to determine the currency exchange rate less than it needs to be knead it will lead to the expansion of exports compared with imports shrinking, which also leads to a disruption in the balance, so these imbalances often result in inflationary pressures, which contributes to the continuity of the imbalance in the balance
From here we can identify the most important causes an imbalance in the balance as follows :
1-wrong assessment of the price of the local currency exchange
2-structural reasons
3-reasons patrol
4-emergency conditions
5-other reasons...
From here we can identify the most important causes an imbalance in the balance as follows
1-wrong assessment of the price of the local currency exchange
2-structural reasons
3-reasons patrol
4-emergency conditions
5-other reasons
http://adf.ly/1e7617In the Libyan case, the balance of payments suffers from all of these reasons, one of the rare things happening Perhaps mentioned letters of credit at the beginning of this blog refers to the wrong focus by the monetary authorities and the lack of attention to the rest of the monetary policy tools Increasing commodity imports and lack of control over the economies of the border, which has expanded significantly very security considerations, political and other raises the unit's foreign exchange leakage is compounded by the collapse of the local currency
Ways to address the imbalance in the balance of payments:
-Correction through the market mechanism
-This method takes a number of aspects and styles, which include:
-Correction through the price mechanism
-Correction by exchange rate
-Correction by income
Public authorities can intervene in the rebalancing of the balance of payments using fiscal or monetary policy to address the imbalance in the economy, both when inflation (due to the deficit in the balance) or recession (due to the surplus in the balance) and called on these processors policies stability.
http://adf.ly/1e7617
The documentary credits is focus of the top traders of wars and crises
The important question is how to handle the assets and international norms of force majeure problems.
It can not be disavowed laws to protect the rights of the parties to the relationship in the business process .
The balance of payments of the state, which measures trade of the country during the year shows the clear impact of the crisis
The question is how to treat the disorder in the balance of payment without finding a solution to the problems of foreign trade, which is considered documentary letters of credits one of the most important pillars.
The existence of an imbalance in the balance of payments is one of the most important economic indicators are a danger to the national economy in relation to the status of that country in international economic transactions, particularly in the event of a deficit in the said balance and knead it public authorities usually intervene in order to bring balance in the balance whenever possible knead, which usually requires a period of several years and using a set of economic measures on condition of inflicting the national economy badly damaged
There is a close relationship between the balance of payments and the currency exchange rate of the country. If the exchange rate of the currency of a country larger than the real value, the rules of engagement will lead to higher prices for commodities the same country from a foreign eyes, leading to lower external demand and thus the rules of engagement will lead to a disruption in Balance of Payments.
If either were to determine the currency exchange rate less than it needs to be knead it will lead to the expansion of exports compared with imports shrinking, which also leads to a disruption in the balance, so these imbalances often result in inflationary pressures, which contributes to the continuity of the imbalance in the balance
From here we can identify the most important causes an imbalance in the balance as follows :
1-wrong assessment of the price of the local currency exchange
2-structural reasons
3-reasons patrol
4-emergency conditions
5-other reasons...
From here we can identify the most important causes an imbalance in the balance as follows
1-wrong assessment of the price of the local currency exchange
2-structural reasons
3-reasons patrol
4-emergency conditions
5-other reasons
http://adf.ly/1e7617In the Libyan case, the balance of payments suffers from all of these reasons, one of the rare things happening Perhaps mentioned letters of credit at the beginning of this blog refers to the wrong focus by the monetary authorities and the lack of attention to the rest of the monetary policy tools Increasing commodity imports and lack of control over the economies of the border, which has expanded significantly very security considerations, political and other raises the unit's foreign exchange leakage is compounded by the collapse of the local currency
Ways to address the imbalance in the balance of payments:
-Correction through the market mechanism
-This method takes a number of aspects and styles, which include:
-Correction through the price mechanism
-Correction by exchange rate
-Correction by income
Public authorities can intervene in the rebalancing of the balance of payments using fiscal or monetary policy to address the imbalance in the economy, both when inflation (due to the deficit in the balance) or recession (due to the surplus in the balance) and called on these processors policies stability.
http://adf.ly/1e7617
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