Current account deficit
Also called: CAD, current account
The shortfall when a country's payments abroad for imports, services and income exceed what it earns from abroad.
A deficit has to be financed by foreign money coming in, such as investment or borrowing. India has often run current account deficits, partly because it imports much of its oil, so higher oil prices tend to widen the deficit and can weaken the rupee.
Learn more in these lessons
- Currency movements and the rupeeWhat moves the rupee, and which companies win or lose when it changes?
- Crude oil and commodity pricesWhy do oil prices matter so much for India and its stock market?
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