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
I think I’m right in saying that at least to start with all that is actually involved is a change in the computerised records of a main international bank. One account has a number taken away and another account has a number added? No actual physical transfer takes place just numbers in accounts.
When someone wants to take out actual physical cash they would presumably do it at a bank in their country that held cash reserves and some computer transaction would take place again from the original account to that bank to replace the cash they had?
Of course in situations when people want to avoid banks or they don’t securely exist then people have been known to transfer a lot of suitcases of physical notes ( or gold or diamonds perhaps) by a physical transport system.
Latest Answers