Official Settlement Account

What is an 'Official Settlement Account'

An official settlement account is a type of account used in balance of payments accounting to keep track of central banks' reserve asset transactions with each other. The official settlement account keeps track of transactions involving gold, foreign exchange reserves, bank deposits and special drawing rights (SDRs). Essentially, this account keeps track of transactions related to international assets.

BREAKING DOWN 'Official Settlement Account'

The other account types used in balance of payments accounting are the current account and the capital account. The current account keeps a record of a country's imports and exports of goods, services, income and transfers, and whether the country is a net creditor or net debtor. The capital account records the change in foreign and domestic ownership of assets.

RELATED TERMS
  1. Chart Of Accounts

    A listing of each account a company owns, along with the account ...
  2. Financial Account

    A component of a country’s balance of payments that outlines ...
  3. Account History

    All activity within an account, usually since inception. In a ...
  4. Balance Of Payments (BOP)

    A record of all transactions made between one particular country ...
  5. Settlement Date Accounting

    An accounting method that accountants and bookkeepers use to ...
  6. Concentration Account

    A deposit account used to aggregate funds from several locations ...
Related Articles
  1. Economics

    What is a Capital Account?

    Capital account is an economic term that refers to the net change in investment and asset ownership for a nation.
  2. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  3. Bonds & Fixed Income

    Understanding Capital And Financial Accounts In The Balance Of Payments

    The current, capital and financial accounts compose a nation's balance of payments.
  4. Investing Basics

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  5. Savings

    Understanding Savings Accounts

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
  6. Savings

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  7. Trading Systems & Software

    Broker Summary: Scottrade Online Trading Platform: Account Types And Minimum Deposits

    Scottrade offers investors and traders a variety of investment and banking account types from which to choose. Most accounts can be opened online, although some require completion of physical ...
  8. Economics

    Current Account Deficit

    A current account deficit occurs when a country spends more money on the goods and services it imports than it receives for the goods and services it exports.
  9. Savings

    What is a Demand Deposit?

    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  10. Professionals

    What is Accounting?

    Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions in financial statements.
RELATED FAQS
  1. What is the difference between the current account and the capital account?

    Learn how to differentiate between the capital account and the current account, the two components of the balance of payments ... Read Answer >>
  2. What transactions are included in a country's balance of payments?

    Learn about the many types of transactions that are recorded in a country's balance of payments, including the current, capital ... Read Answer >>
  3. What does a negative balance in the capital account mean?

    Understand what a country's capital account represents and the significance of a negative, or deficit, balance in the capital ... Read Answer >>
  4. What is the difference between a financial account and a capital account?

    Understand the components of a country's balance of payments. Learn about the difference between a country's financial account ... Read Answer >>
  5. What does a positive capital account balance mean?

    Learn about a capital account, the four categories of transactions that comprise it and the meaning of a positive capital ... Read Answer >>
  6. What types of assets and payments are recorded in the capital account?

    Read a brief overview of the definitions of the capital account, where it is used, and what types of assets and payments ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center