What is barter primarily used for in economic transactions?

Barter is primarily recognized for its role in directly exchanging goods and services without the use of money. This system allows individuals or businesses to trade items they possess for items they need, making it a practical solution in situations where currency may be unavailable or in informal markets. The essence of barter lies in the mutual agreement between parties on the value of the goods or services exchanged, which bypasses the need for a standard monetary system.

In contrast, exchanging digital currencies pertains to converting or trading electronic forms of money, which does not characterize barter. Facilitating international trade typically involves the use of currency, regulations, and trading agreements rather than direct exchanges of goods and services. Similarly, paying interest on loans involves monetary transactions and is unrelated to barter practices, which focus solely on the exchange of tangible items. Thus, the dominant feature of barter transactions is effectively highlighted by its direct exchange of goods and services.