UAE balance of payments is back in positive territory
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UAE balance of payments is back in positive territory Dubai, May 28, 2004 (WAM) -- The UAE has once again returned to the positive in its balance of payments (BoP) position, which stood at Dh4.73 billion in 2003 against a negative Dh1.52 billion in 2002, according to +Gulf News+ report, quoting from figures released by the UAE Central Bank. The year 2000 witnessed the highest BoP since 1998 as the balance of payments surplus touched Dh10.41 billion. While 1998 had a BoP of Dh2.76 billion, 1999 witnessed a BoP of Dh5.62 billion. The BoP position, which is a function of capital account balance and current account balance, had suffered a deficit in 2002 for the first time since 1998. During 2003, while the capital financial account went to a negative of Dh14.74 billion, down from Dh5.50 billion in 2002, the country recorded a handsome positive current account balance of Dh23.09 billion in 2003, up from Dh12.51 billion in 2002, thanks to a better oil price which was estimated at an average of $28.11 per barrel for 2003. BoP is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BoP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BoP in order to determine how much money is going in and out of the country. Analysing the BoP position, a country can identify from which part of the economy the discrepancies are stemming. The year 2000 saw one of the highest negative capital account balances of Dh40.09 billion, but it was a Dh2.23 billion surplus in 1998. According to econ-omists, the growth in imports will pave the way for increased economic activity. The net errors and omissions accounted for a negative Dh3.62 billion, which took the net BoP position to a positive of Dh4.73 billion for 2003. In fact the high oil price in 2003 resulted in a positive trade balance of Dh73.85 billion for the UAE during 2003 against a corresponding figure of Dh53.73 billion the previous year. The total revenue from exports of hydrocarbons alone amounted to Dh108.57 billion against Dh85.18 billion in 2002. Balance of Payments Position as of 2003 end (Figures in billion dirhams) Capital & financial account balance -14.74 Current account balance +23.09 Net errors & omissions - 3.62 BOP position as of 2003 end 4.73 WAM/SA 11 13 CCCCQQE
