When there is a current account deficit and the official settlements account equals 0, then

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A current account deficit implies that the country is importing more goods, services, and capital than it is exporting. If the official settlements account is zero, it means there is no change in the country's foreign exchange reserves. Therefore, the capital and financial account must have a surplus to offset the current account deficit, indicating that the country is receiving more capital inflows than outflows.

When There Is a Current Account Deficit and the Official