Accommodating Transactions

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Accommodating Transactions

Transfers of money, gold, or highly liquid assets that a central bank or other monetary authority makes to stabilize a country's balance of payments. That is, a central bank makes accommodating transactions when a country's balance of payments has become too positive or too negative and is therefore putting pressure on exchange rates. The accommodating transactions are not made for purposes of profit, but instead to help bring equilibrium to a country's currency.