Currency clearing is a method for establishing foreign economic relationships that is used in international settlements. This method is based on a bilateral or multilateral agreement, whose participants are the states involved in interconnected trade relations.

It is used when there is a shortage of freely convertible currencies in a country to establish mutually beneficial settlements. When two countries reach an agreement in trade and economic relations, a currency is chosen for clearing, according to which mutual obligations and requirements are met.

Currency clearing is a process in international finance that ensures the settlement of currency transactions between banks. It involves matching, confirming, and settling payment orders for foreign exchange trades. Clearinghouses, such as CLS Bank, act as intermediaries, reducing counterparty risk and ensuring that payments are exchanged simultaneously, mitigating settlement risk. This process is crucial in maintaining the stability and efficiency of the global financial system, especially in the forex market where large volumes of currency are traded daily. By standardizing and streamlining transactions, currency clearing helps prevent discrepancies and delays, providing a secure environment for international financial operations.