If there is a small surplus in the combined current account plus capital and financial account for a certain year, then to make the two accounts balance, there will be

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To balance the two accounts, a small surplus in the combined current account plus capital and financial account would require an increase in official reserve holdings. This is because the surplus reflects a situation where more money is flowing into the country than out, and in order to maintain the exchange rate and prevent inflation, the central bank would have to buy up the excess currency and hold it in reserves. This would increase the official reserve holdings, bringing the two accounts into balance.

If There Is a Small Surplus in the Combined Current