Abstract

The United Nations' A System of National Accounts (SNA) does not explicitly deal with the question of exchange rate differentials—that is, income generated by banks and government authorities holding foreign exchange as a result of differences in the purchase and sale prices of foreign currency. This paper offers suggestions on how to deal with this question, covering three situations: stable monetary conditions, volatile changes of exchange rates over time, and multiple exchange rate regimes.

Author: Vicente Galbis