The Balance of Payments

Can highlight pressures for devaluation or revaluation, reflected in large and systematic trend of foreing currency reserves at the central bank. In particular, large inflows, due for instance to a rise in the world price of main exports tend to revaluate the exchange rate. Conversely, a collapse in the trust of government to manage the economic conditions might provoke a flight of capital, the exhaustion of foreign currency reserves and force a devaluation / depreciation.