Say country A sends some billions of dollars to country B in aid or in exchange for some resource. How does the actual transfer take place? How does the wealth of country A decrease and the wealth of country B increase?
In: 472
Most nations have accounts at the federal reserve. If the crediting is to be in dollars they can just credit or deduct their account balance.
Note that most money today is just database (book keeping) entries. Nobody sends chunks of money in ships or airplanes. Note also that money doesn’t even exist even if someone wanted to send it.
Finally and most importantly that’s also the mechanism by which the nation who serves this intermediary function gets to rule its doctrine over other nations. See sanctions US imposes on other nations.
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