How can an international cheque be cleared?

An international cheque is typically cleared through a correspondent banking system, which is why sending all cheques to a correspondent bank is the correct method. Correspondent banks are financial institutions in different countries that have established relationships to facilitate international transactions. When an international cheque is issued, the payee’s bank may need to rely on its correspondent bank in the drawer’s country to process and clear the cheque.

This process involves the correspondent bank verifying the cheque's authenticity and ensuring that the funds are available in the issuer’s account. It also helps in navigating the different currencies and banking regulations involved in cross-border transactions. Correspondent banks play a crucial role in handling international payments where direct relationships between banks in different countries may not exist.

In contrast, presenting the cheque at a local municipality, directly depositing it into an ATM, or using an online banking application are not viable options for clearing international cheques. These methods are more suited for local transactions or those involving domestic cheques and do not account for the necessary international banking relationships that facilitate the clearing process.