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Answer: Financial institutions (banks) in each country have their own affiliated banks and make payments using the foreign currency accounts of the affiliated banks. In this way, the bank that financial institutions use for foreign currency settlement is called "Correspondent Bank" (the account is called correspondent account). Financial institutions that deal with foreign exchange have signed correspondent contracts with banks around the world, and have them carry out exchange services for international settlement such as remittance, deposit, and bill collection. This makes it possible to transfer funds only by document (communication) without transferring fund.