International Settlement

International settlement refers to the process of finalizing a financial transaction between parties in different countries. When businesses or individuals buy or sell goods, services, or currencies internationally, the settlement ensures that the agreed payment is completed correctly and securely across borders. This involves transferring funds through banking systems, often via foreign exchange or international payment networks, to ensure both sides receive what is owed. Effective settlement minimizes risks like default or fraud, maintaining trust and smooth functioning of global trade and finance.