A BOP surplus means there is a surplus dem and for the country's currency most likely du e to a surplus of exports of goods and servic es$.$ Under a fixed exchange regime, the gove rnment is obligated to attempt to keep the B $OP$ at or near zero. This surplus demand for currency means the government must supply it to the international markets by using curren cy to buy gold or foreign currencies in the int ernational market place.

Under a floating exchange rate regime, $t$ he excess demand for the home currency wo uld result in an appreciating currency on the $f$ oreign exchange markets. Demand for the $cu$ rrency would in theory push the value up$,$ thu s reducing exports, increasing imports, and moving the balance of payments toward equi librium.