ELI5- How do countries and large institutions pay each other?

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For example when a country pays its dues to the UN or IMF or when a company buys over another company for a large sum. Do they just simply ‘wire’ the funds or bank transfer?

In: Economics

7 Answers

Anonymous 0 Comments

Welcome to the SWIFT system. They basically wire money from institution to institution. No one uses paper chèques since they are only a hard copy version of the actual digital transaction.

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