Settlement should take place in central bank money whenever possible
No. 2 2024, 20 February
Settlement should take place in central bank money whenever possible
Published: 20 February 2024
The safe settlement of money and securities is essential for the smooth functioning of the financial system. Settlement in central bank money is favoured by both legislation and international principles as it eliminates the credit risk for the participants in the system where the settlement takes place. However, it is not always easy or even practical to settle in central bank money and therefore settlement in commercial bank money may sometimes be necessary. In the face of major changes in traditional payment and securities markets, it is important that actors work to maintain safe and efficient systems for the settlement of money and securities. The Riksbank monitors and analyses developments to see when and how settlement in central bank money should be used to minimise the risks associated with settlement.
Economic Commentary
No. 2 2024, 20 February
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