A current account is a record of the balance of payments between a country and all other countries during a specified period of time, usually one year. The current account includes the balance of trade, which is the sum of a country’s exports and imports of goods and services, as well as other financial transactions such as investment income, worker remittances, and transfers.
A capital account is a record of a country’s international investments. It records all capital transfers and investments associated with the country, including foreign direct investment, portfolio investment, and other investments. In addition to net capital inflows and outflows, the capital account also includes adjustments to the balance of payments resulting from official reserve transactions and changes in foreign exchange reserves.