The system by which banks hold accounts with each other to move money across borders. A bank in Qatar that needs to pay a counterparty in Switzerland doesn't wire euros — it uses its US correspondent bank to settle in US Dollar, usually via SWIFT messages. US correspondent banks are the backbone of global trade and, by extension, one of the core load-bearing pieces of Dollar Hegemony. Being cut off from US correspondents is what Sanctions actually means operationally.
Correspondent Banking
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- Qatar Linked from · References
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- Sanctions Linked both ways · References
- SWIFT Linked both ways · References
- US Dollar Linked both ways · References