The factor that shifts the BP curve is a change in perception of asset substitutability.

Question

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The BP curve represents the relationship between a country's exchange rate and the balance of payments. A change in perception of asset substitutability (i.e. the ability of investors to switch between a country's assets and foreign assets) can cause a shift in the BP curve. Specifically, if investors perceive a country's assets to be more substitutable with foreign assets, the demand for the country's currency will decrease, causing the BP curve to shift to the right. If the perception is the opposite, the demand for the currency will increase, causing the BP curve to shift to the left.

The Factor That Shifts the BP Curve Is a Change