<p>How does the settlement of trades in foreign exchange work?</p>

<p>For example, if I am a large company with money in dollars and I buy another currency like Deutschmarks with my dollars, how does the money flow? Where do my Deutschmarks end up? Do US banks have accounts with foreign currency in them for this purpose?</p>

CC BY-SA 3.0
2016-11-23T08:01:46.670Z
In the last year [14 of the 24 questions](http://economics.stackexchange.com/users/1448/lassie-fair) you posted have been answered. You have accepted zero of these answers. It seems like you really enjoy using the site, so please consider those putting in time and effort to answer your questions.
Giskard
CC BY-SA 3.0
2016-11-23T09:33:22.003Z
here is an illustration [economics.stackexchange.com/questions/9920/us-trade-outpaces-gdp](http://economics.stackexchange.com/questions/9920/us-trade-outpaces-gdp)
very good question, some effort and time to answer it, but the answer is probably not good enough and I would be pleased to know why... just to keep learning!
emeryville
<currency><foreign-exchange>
How does foreign exchange settlement work?
Lassie Fair
# How does foreign exchange settlement work?

(Asked by: username_0 on 2016-11-23)

How does the settlement of trades in foreign exchange work?

For example, if I am a large company with money in dollars and I buy another currency like Deutschmarks with my dollars, how does the money flow? Where do my Deutschmarks end up? Do US banks have accounts with foreign currency in them for this purpose?

**Tags:** currency, foreign-exchange
> **Comments:**
> **username_1**: In the last year [14 of the 24 questions](http://economics.stackexchange.com/users/1448/lassie-fair) you posted have been answered. You have accepted zero of these answers. It seems like you really enjoy using the site, so please consider those putting in time and effort to answer your questions.  
> **username_2**: here is an illustration [economics.stackexchange.com/questions/9920/us-trade-outpaces-gdp](http://economics.stackexchange.com/questions/9920/us-trade-outpaces-gdp) very good question, some effort and time to answer it, but the answer is probably not good enough and I would be pleased to know why... just to keep learning!  

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