CLS Movement

The CLS (Continuous Linked Settlement) movement is a global effort to improve how banks settle international currency trades. Instead of sending payments across different countries and currencies, CLS creates a secure, synchronized system where all related transactions settle simultaneously. This reduces risks like delays or defaults, enhances efficiency, and minimizes potential currency exchange losses. By coordinating the settlement process centrally, CLS helps ensure that international transactions are completed smoothly, reliably, and with less exposure to financial risk, fostering greater stability in the global financial system.