Cash inflow indicator has recently become popular. This is because it shows the amount of foreign currency that was brought into the country’s economy in the reported period. It allows concluding that there is a strong interrelation between this indicator and the level of the trading balance deficit.
In fact, the entire analysis of this economic indicator comes to a fact that the foreign cash inflow to the national economy has to exceed the deficit’s level. It indicates that the financial state of a country is healthy. And this, in its turn, guarantees a strengthening of the currency of a country that is being analyzed. Consequently, deficit will mean that the negative trend is being created.
Data on the inflow of the foreign currency are published each month and can influence the market substantively.