Hi there,

Richard Brown here - the author of the linked article.

Very good point re FX and CLS. I wanted to make the article as simple as possible so as to bring out the fundamental concepts (correspondent banking, deferred net settlement, real-time gross settlement, etc).

In so doing, I had to make some gross simplifications and omissions - the most obvious being ignoring FX but I also made a sleight of hand by implying that banks within a country use the correspondent arrangement I outlined.

However, I hope - even with these simplifications - the concepts came across clearly.

Thanks for taking the time to comment.

Richard