International Settlements

International settlements refer to the process of settling cross-border financial transactions between countries, banks, and businesses. It involves exchanging currencies, transferring funds, and ensuring payments are completed accurately and securely. Organizations like the Bank for International Settlements (BIS) facilitate these processes by providing a platform for cooperation among central banks and financial institutions. This helps maintain global financial stability, manage exchange rates, and promote smooth international trade. Essentially, international settlements are the mechanisms that enable different countries’ economies to exchange money efficiently and reliably in the global financial system.