Total credits in the balance of payments accounts are equal to the

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Total credits in the balance of payments accounts represent both the supply of foreign exchange (when a country receives payments from abroad, it supplies its currency in exchange for foreign currency) and the demand for dollars (from the perspective of the United States, for example, when foreign entities demand dollars, they supply their own currency in exchange). These two concepts are essentially two sides of the same coin, reflecting the dual nature of currency transactions in international trade and finance.

Total Credits in the Balance of Payments Accounts Are Equal