Autonomous Transactions: are independent of all other transactions in the BOP. These transactions are not influenced by the foreign exchange position of the country. Exports, imports etc are some examples.
Accommodating Transactions: are undertaken to cover deficit or surplus in the autonomous transactions. Therefore, their magnitude is determined by the autonomous transactions.
Deficit in BOP: is determined only by the autonomous transactions. When autonomous foreign exchange payments exceed autonomous foreign exchange receipts, the excess is called BOP deficit.
