Notes from working through Cross-Border E-Commerce Payment and Settlement, my starting point for getting into cross-border payments.
A few basic concepts Foreign exchange (FX) Foreign exchange is a claim held by a country’s monetary authorities — the central bank, currency management bodies, exchange stabilization funds, and the treasury — in the form of bank deposits, treasury bills, and short- and long-term government securities, that can be drawn on to cover a balance-of-payments deficit. It covers foreign currency itself, foreign-currency deposits, foreign-currency securities (government bonds, treasury bills, corporate bonds, stocks), and foreign-currency payment instruments such as drafts, bank certificates of deposit, and postal savings certificates.
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