Find and review the Balance of Payments statistics of the Kingdom of Bahrain. Most likely it will be provided via the homepage of the country’s central bank (otherwise ask me for help). It will likely consist of many pages of spreadsheet. Focus on the comprehensive table with the annual data. Answer the following questions:
– How did the Current Account Balance develop over the last 5 years, in absolute terms and in relation to GDP?
– Is the country a net borrower or a net creditor country? Show the data.
– Does the country (government/companies) have large foreign debt?
– How do you think the Balance of Payment situation impacts the currency’s development vis-à-vis another benchmark currency (i.e. Euro, or USD) ?
– Are you positive for the currency (will likely strengthen) or negative (will likely weaken) going forward? Why?

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