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).
Unrecorded movements in the UK balance of payments