In most cases, the answer is no. International wire transfers are subject to manual review, and the very minute you introduce a manual review process, the committed timelines go out the window. Also, most of the wire transfers are based on a batch of FIFO (First In, First Out) during operational times. The interdependencies with […]
It depends: It is either pre-funded, i.e. arrangements are made to have enough money on the other side, so that when a payment is made, the money is taken out of the available balance and paid for. The other arrangement is credit (which has a counter party risk factor higher than the pre-funded one). In both cases, […]
It doesn’t! (unless of-course you are operating a 100% cash only money transfer network – an example of which I do not know of). To understand how cash is transferred between countries, read this answer: Faisal Khan’s answer to Where do currency exchanges get their currency? To understand how money transfer works between countries, including remittances, […]
Typically no. RTGS is usually used by banks in a country to go large settlements amongst themselves. It is pretty much a localized system. In many countries the RTGS is run by the central bank or by a semi-autonomous body. The clearing of funds with the RTGS are all based on local currency.