Rest of the world account (ROW) is a statistical statement that systematically summarizes for a specific time period, the economic transaction of an economy with the rest of the world. Rest of the world account is also known as the external transaction account, which covers transactions between resident and non-resident institutional units. An external transaction account is the accountancy of all rest of the world for the country.
The rest of the world accounts comprise those categories of accounts in the System of National Accounts published by United Nations in 1993 (SNA-93):
· The external accounts of goods and services;
· The external account of primary incomes and current transfers;
· The external accumulation accounts:
· Other changes in volume of assets accounts
· Revaluation account
· The external assets and liabilities account;
· Opening balance sheets
· The changes in the value of those assets and liabilities between the opening and closing balance sheets
· Closing balance sheets
Classifications which are defined in the System of National Accounts, 1993 (SNA-93) is used for Rest of the World Accounts. Classifications of the balance of payments statistics, which is defined in the IMF “Balance of Payments Statistics fifth manual”, is also used for the rest of the world accounts tables.
International guideline is the European System of Accounts, 1995 (ESA-95).
The rest of the world accounts comprise those tables which are published:
· The capital accounts;
· The financial accounts.
Geographical coverage is whole Turkey.
Central Bank of the Republic of Turkey (CBRT) has been preparing detailed balance of payments monthly, quarterly and yearly according to IMF fifth manual. Balance of payments statistics is the basis for constructing Rest of the World Accounts.
Valuation is being done both US Dollars and Turkish Liras. Balance of payments statistics in Turkey is prepared with “US Dollars” by CBRT. So that first of all rest of the world accounts are constructed with US Dollars for consistency. And then, monthly weighted exports and imports foreign exchange is used to convert Turkish Liras.
Balance of payments statistics according to IMF fifth manual, which is prepared by Central Bank of the Republic of Turkey (CBRT), is the basic source for the Rest of the World Accounts.
The balance of payments accounts and related data on the international investment position are closed linked to the overall System of National Accounts. The balance of payments and international investment position are complied first, and subsequently incorporated in relevant external account components of the rest of the world account of the system.