Clearing is a method of debt cleansing or an opportunity to save money transactions?

Clearing is a system of non - cash payment for goods, services and securities, based on accounting for counter financial claims and liabilities. That is, the main objective of clearing is to provide clarity of the results of the trading session, banking non-cash transactions and international trades (for the subjects of the clearing process). Thus, we can consider: clearing is a financial turnover that occurs on mutually advanced terms of value exchange (between its subjects). The clearing object is considered to be clearing companies, which organize the entire workflow and are called clearing houses.

Depending on the number of participants, clearing is bilateral and multilateral. It reduces the number of payments, helping to save money on cash transactions to its participants. That, in turn, can associate it with barter and helps to simplify the perception of the understanding of the whole process to novice financiers. However, it is worth remembering that there is only an associative similarity. And understand the difference between the two processes of non-cash economic turnover. Clearing is primarily a means of streamlining counter financial obligations and claims, albeit non-cash, and barter is a way of exchanging values negotiated by the parties.

This system of mutual settlement in international traffic began to be used in the mid-1930s. With the beginning of its use, the need for money-making funds in the world market has significantly decreased, which made it possible to simplify foreign exchange transactions between states. According to the world practice, for today there are such types of clearing, as commodity, currency and interbank.

Commodity is a clearing on the securities market, which includes a system of offsetting obligations of market participants to each other and arranging a system of settlements between them. The life-activity of this method of doing business is provided by the clearing house. The clearing of the RTS, the stock exchange of St. Petersburg, the Ural Regional Currency Exchange is an example of the practice of using such operations in our country, which is (today) a sufficiently developed element of financial activity for the main exchanges in Russia.

Currency clearing is a system of interstate (based on agreements of governments of countries) relations. This is a proven approach!

Interbank clearing is the process of circulation of funds in the middle of the banking system of the state, which is a non - cash settlement between banks with the help of single settlement centers. He has a place in any country (with a more or less developed banking system).

Thus, to date, international financial transactions, accounting of interbank requirements and obligations, systemic calculation among exchange market participants use clearing to ensure these transactions and reduce the role of cash. This practice has become commonplace for the modern world economy and for humanity as a whole.