"Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account." Justify the given statement with valid explanation. "Depreciation of currency may promote exports of a nation." Defend or refute the given statement with valid arguments.

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Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account because they are compensating capital transactions meant to correct disequilibrium in autonomous items. When there is a deficit or surplus in autonomous transactions, accommodating transactions (like drawing down foreign exchange reserves or borrowing from IMF) are used to finance the gap and restore balance.

Depreciation of currency may promote exports because it makes domestic goods cheaper for foreign buyers. When domestic currency depreciates, foreign buyers can purchase more goods with the same amount of foreign currency, increasing demand for exports.