Quote:
Originally posted by rowan
Does the SPOT value also affect when the settlement between banks happens (which may result in different currency rates), or is it purely for the receiving banks benefit?
As mentioned above my wires arrive very quickly, perhaps my bank ignores this and credits me immediately.
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yes, the SPOT (VALUE DATE) value is the settlement date, thats why the ammount is credited on the beneficiary account on the VALUE DATE. Even if your bank is slow, or for any reason they receive the SWIFT message AFTER the value date (happens mostly when banks don have all the branches connected in real time to headquarters) they must credit your account on the value date. Ex. 5000$ incoming with a value date of 15 of June...for whatever reason bank/branch received the message of 17th of June...they will credit the funds on your account on 17th of June but with a date of "funds available" of 15 of June
If you get your wires quickly it means that the Ordering Bank is puting a Value Date of SPOT +1 or smth...not all banks put the default value of SPOT +2 and also there are a lot of banks that allow the ordering customer to specify the value date, witch can be from SPOT to SPOT+xxx