The standard presentation of the balance of payments of the United Kingdom has evolved since the war. Broadly speaking, it divides the accounts into two parts; first, the "balance of current and long-term capital transactions" - usually referred to as the surplus or deficit - and second, the "balance of monetary movements", which aims to show how the surplus or deficit has been financed. The two balances, if correctly recorded, would be equal; in practice they differ, and the difference is expressed as the "balancing item". This article is concerned with some aspects of the balance of monetary movements. It should be read in conjunction with other articles on the balance of payments that have appeared in earlier Bulletins.