The settling of any net deficit in the combined current, and capital and financial accounts is done with

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The settling of any net deficit in the combined current, and capital and financial accounts is done with official reserves. Official reserves are held by central banks and are used to settle deficits in the balance of payments. These reserves include foreign currencies and gold. When a country's balance of payments is in deficit, its official reserves are reduced to finance the deficit.

The Settling of Any Net Deficit in the Combined Current