in the capital account. The remnaining item in the current account in Table A. 1, distributed net profits and other net expenses, becomes the adjusted residual variable. This variable encompass all items other than interest payments and receipts, including operating costs, exceptional revenues and costs, etc. Net profits therefore are uses (column) for the Monetary Sector, and are transferred as a current source (row) for the Private Sector. In the case where the current account is not crucial, a lack of information of prices and interest rates can be overcome by allocating all the interest payments on foreign liabilities and interest received on foreign assets of the financial system into the private sector current account.

# Monetary Sector Capital Accounts

As we know, the Banking Survey aggregates data from the Central Bank, Deposit Money Banks, and Other Financial Institutions. Data for this survey is usually found in the form of balance sheets t.Kpressed in local currency at the end of the year. For assets and liabilities denominated in local currency, the corresponding flows are easily obtained as the difference in stocks. However, when dealing with items expressed in local currency which were originally denominated--totally or partially--in foreign currency, some adjustments must be made. As we have already discussed, we have to compute crosscurrency, revaluation and timing effects to achieve consistency between stocks and flows. T71us, capital account flows in the FOF are obtained by computing stock differentials in local currency, corrected by the mentioned effects when appropriate.

All credits ace expressed as net values. For example, net claims to central government equals total central government credits minus deposits. In the same way, credit to non-financial public enterprises (NFPE), minus their deposits give net claims on NFPE. In the FOF matrices, the Private Sector will consolidate private sector as well as NFPE activities.

On the liability side, currency in circulation plus notes and coins issued and held by the Private Sector constitute base money. Sight, saving and other time deposits will be taken as they are originally presented in the monetary accounts, but they will be captured in local and foreign currency. Foreign borrowing figures may be obtained from different sources, such as the Debt Reporting System. In any event, the debt flows should be compatible with the figures in the Balance of Payments. Other liabilities is subtractcd from the net other assets account.

It is important to differentiate in the "net other liabilities" category in the Banking Survey between the net worth of the monetary sector, and the value of the revaluation account. The devaluation or revaluation account is also a stock. T'hus, in the starting of base year we have to provide its value as endof-period stock. For next year, it will be equal to its initial value plus the "total revaluation account" figure. The latter is computed by calculating and adding all the net (positive for assets, negative for liabilities) revaluation, timing and cross-currency effects mentioned above. Finally, the monetary sector's change in net woith, or savings in our notation, closes the capital account.

Looking at the capital account matrix, in Table 1, note tha; two items have to be consistent with information from other sources in the Foreign Sector: Foreign debt (labeled foreign credit), and the change in foreign reserves.

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