the formulation of national and international economic policies. The balance of payments imbalances and foreign direct investment (FDI) is crucial for a country's policymakers to seek solutions. The impact of national and international policies can be seen in the balance of payments data. For example, one country may implement a policy to attract foreign investment. In contrast, another country may want to keep its currency relatively low to stimulate exports. Although a country's balance of payments will bring its current account and capital account into balance, there will be imbalances between countries' accounts. According to the World Bank data, the current account deficit in the United States is $498 billion in 2019 (The World Bank) Suppose a country's balance of payments deficits are persistent. In that case, the country may suffer from a loss of confidence as its foreign exchange reserves deplete. At the same time, it makes the country very vulnerable to seasonal, cyclical or unpredictable fluctuations in foreign countries. It could lead to excessive inflation at home. Therefore, the stability of currency provides a strong guarantee for the sustainable development of the economy. Countries can analyze the current economic situation domestically and internationally through the annual balance of payment and formulate effective monetary policy combined with the political influence of international and multilateral relations (Zolotas and Ethymiou 1965) The economic policy objectives could, in principle, serve as the standard for the balance of payments policies. At the same time, exchange rate policy is treated as income policy. F. De Roos (1982) argues that only equilibrium of the balance of payments can be considered as a long term criterium for the balance of payments policy in the case of stable exchange rates. In the case of flexible exchange rates, the criterium can be found in the degree of domestic economic stability. See also Currency crisis Exchange rate regime Foreign exchange reserves History of money IMF Balance of Payments Manual Sectoral balances Sovereign default Sterilization (economics) Sudden stop (economics) Notes and citations Further reading Economics 8th Edition by David Begg, Stanley Fischer and Rudiger Dornbusch, McGraw-Hill Economics Third Edition by Alain Anderton, Causeway Press External links Data Comprehensive international BOP statistics from the IMF BOP for Hong Kong US statistics (See "External Sector") Detailed historical BOP data from the US Bureau of Economic Analyses Analysis Report to Congress on International Economic and Exchange Rate Policies Feb 2011 US treasury report