Current Account

A component of the balance of payments account that measures the flow of goods and services.

Under current account, there is the merchandise trade sub-account, which records import and export transactions of all commodities and manufactured goods.

Services include tourism, transportation, engineering, and business services, as well as fees from patents and copyrights on new technology, software, books, and movies.

Income receipts include income derived from ownership of assets, such as dividends and interest payments.  This is included in the current account because that income is regarded as compensation for services provided by foreign investments.

And unilateral transfers, which refer to one-way transfers of assets, such as worker remittances from abroad to their home country and foreign direct aid or gifts.

See also: Capital Account, Financial Account

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