How foreign loans works? Do lessor country gives the cold cash to his lessee country? How about, if they have a different currencies?

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How foreign loans works? Do lessor country gives the cold cash to his lessee country? How about, if they have a different currencies?

In: Economics

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Anonymous 0 Comments

These days, probably not cold hard cash, but an interbank wire transfer.

Loans like that are generally made in a reserve currency (dollars, euros, yen, etc.).

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