4.1 The international transactions reporting system (ITRS) 1 is part of the broader institutional data collection framework of many economies. It differs from economy to economy, drawing from economies’ legal framework, accounting systems, and foreign exchange regulations; however, virtually all such systems have certain features in common. Most ITRS (formerly known as foreign exchange record systems) evolved as by-products of foreign exchange control systems. However, as foreign exchange restrictions were eased or lifted, many systems were extended beyond their original purpose of measuring foreign exchange transactions; hence, a broader designation is necessary to describe them. This chapter outlines features of an ITRS and also discusses the use of an ITRS in compiling balance of payments and IIP statistics.