Schweser mentions that gifts from other countries come in the current account. The CFAI EOCs account for foreign aid as a part of Capital/Finaicial Account.
Can anyone tell me which a/c would be appropriate for aid recived by a country?
Not too sure myself, but I guess it would depend on the form of aid.
If it’s pure financial aid (loans etc.), I guess it would be more of a financial account item. If it’s bags of rice or medicine then its probably better to place this as a current account item. I’m just guessing though.
Going_for_CFA’s explanation makes sense.