Say for example I sell ZAR and buy USD. What happens behind the scenes so that the local ZAR bank is able to deposit USD into my account?
- Does the bank require some sort of USD cash reserve?
- How do the banks interact/negotiate with each other?
- What if the bank selling ZAR cannot find a bank/trader selling USD who wants ZAR?
- If the bank does find a source of USD, is any physical money like notes/bills/gold ever moved from one bank to another to settle the account?
- How are these transactions regulated or monitored to avoid fraud?