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Balance of payments disequilibrium refers to a situation where a country’s total payments to other nations exceed its total receipts from them, or vice versa, over a given period. In other words, it is an imbalance between the inflows and outflows of foreign exchange, indicating that the demand for a country’s currency does not equal its supply in the international market. A persistent deficit reflects that a nation is spending more on imports and foreign obligations than it earns from exports and other inflows, whereas _________ _____ _________ _______ _______ ______ ____ __________ _______.
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