Unrecorded movements in the UK balance of payments

Quarterly Bulletin 1962 Q1
Published on 01 March 1962

The United Kingdom's balance of payments has recently become more difficult to interpret because a large discrepancy has emerged in the official estimates between the deficit on current and long-term capital account, and the net change in reserves, overseas sterling holdings and other items that by convention together make up the balance of "Monetary movements". After amounting to £66 million in 1958 and £10 million in 1959 this discrepancy, known as the "Balancing item", rose to £364 million in 1960 and was £222 million in provisional estimates for the first nine months of 1961. For each year the discrepancy was "positive", implying either that the balance on current and long-term capital account has been less unfavourable than shown or that the net monetary movement has been more unfavourable, or a combination of both (a more likely situation).

PDFUnrecorded movements in the UK balance of payments

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