Spot Contracts

Spot foreign exchange contracts provide the most immediate conversion of one currency to another. For most countries, payment typically would be achieved within two business days. Spot contracts are useful in handling payables or receivables involving a foreign currency. Payments in advance, open account settlements and letters of credit all can be handled by spot contracts. This is a simple but effective means of making payments internationally.

Foreign Exchange
Products and Services
• Foreign Exchange Services
• Spot Contracts
• Forward Contracts
• Window Forward Contracts
• International Check Clearing
• Foreign Draft Issuance
• International Wire Transfers
• Currency Notes

Example: Foreign Currency Payable

Your company purchases auto parts from Japan. The invoice is received and due immediately. California Bank & Trust will pay the full Japanese yen amount and debit your account for the US dollar equivalent.

Your CB&T
Bank Account
CB&T
CB&T in Japan
Japanese Supplier
Example: Foreign Currency Receivable
Your company sells computer equipment to Canada. The Canadian buyer agrees to make payment as soon as the equipment is received. The customer is given California Bank & Trust's Canadian banking procedure instructions and the US dollar equivalent is credited to your account.

Your
Customer

CB&T in Canada
CB&T
Your Account