Community post
How money moves around the world
Revolut, the banking app, released this very interesting article about how money moves around the world. At least it's very interesting to me and I can see why there is a liquidity problem in traditional money transfers around the world.
https://blog.revolut.com/how-your-money-moves-around-the-world/
It makes a lot more sense when you look at the gifs, however here's my interpretation.

It talks about how bank transfers work in the following scenarios:
Intra-bank transfers 🏦
Update 2 records, debit account A & credit account B
Inter-bank transfers (where there is a relationship) 🏦🏦
2 banks would have accounts with each other e.g. Lloyds would have a Barclays account & vice versa
When A (Barclays) transfers money to B (Lloyds);
Within Barclays - account A would be debited and and Lloyd's account would be credited
Within Lloyds - account B would be credited
Inter-bank transfers (with intermediary) 🏦➡️🏦
2 banks would be reserves with an intermediary (e.g. Central Bank)
When A (Bank 1) transfers money to B (Bank 2);
Account A would be debited by Bank 1
Bank 1 account to be debited within intermediary
Bank 2 account to be credited within intermediary
Account B would be credited by Bank 2
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