-1

I'm interested in a conceptual explanation at the accounting level, i.e. who owes who what during the process.

I couldn't find anything on the web or on YouTube. It's very cumbersome to describe in words or even in a diagram because there are many different parties involved, and many steps.

I think you need a series of pictures using a familiar metaphor like T-accounts.

Is there a better way?

Graham P
  • 93
  • 1

1 Answers1

-3

The best way I've found is an animated diagram where you can step through the process on your own time. It starts simply and adds detail incrementally. It uses the familiar accounting metaphor "T-accounts" (assets left, liabilities right).

Here's an animated GIF version (steps are 2 seconds apart):

e.g. Sipho in South Africa sends $5 to Brock in USA to settle debt

Visualization

Here's a visualization I wrote that you can step through on your own time:

https://banking-viz.glitch.me/

Choose “Foreign wire” and press “Next step” to advance through the steps.

Ganesh Sittampalam
  • 30,396
  • 8
  • 95
  • 119
Graham P
  • 93
  • 1