If you ever wondered where your donation for hurricane, tsunami, earthquake, or any other natural disaster relief in a foreign country actually ended up...the answer is within a current transfer.
We all get a little lump in our throat when we throw a 20 into a donation box. Fortunately, chances are good that our 20 ends up as a current transfer. Current transfers occur within the “current account,” or the account that houses all of the transactions between the United States and the rest of the world. They are also one-sided, typically of the donation flavor.