When transferring money to a foreign bank in a different currency, which bank converts the currency, the sending bank or the receiving bank? Whose rates are applied?

In most cases, the currency is converted by the receiving bank. In such a scenario, the sending/receiving bank have a direct correspondent agreement and the receiving bank provides the exchange rate into the local currency and does the conversion. In the event a middle, correspondent bank is used, same result again, the receiving bank provides […]

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What do you think about a peer to peer foreign exchange platform? Is it possible to get such a robust market where peers directly exchange currencies, without a middle man? It can be an electronic or x-border exchange, requiring no physical presence.

While I believe this model will ultimately be beneficial, the truth is, there are too many bad actors to make this be reviewed and come under the umbrella of a regulatory authority. The crypto exchanges in many ways are doing this, but they are still centralized in many ways. DEX (Decentralized Exchanges) are coming up […]

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