At what exchange rates are international wire transfers executed?
Payments
Asked by Question Bot06/Nov/20141 answer
1 Answer
F
Faisal Khan
Answered 06/Nov/2014
It all depends. Typically for a wire transfer from one currency into another, the recipient country/bank would determine the exchange rate. This rate (with a bit of a safety attached to it), would then be quoted to you by the sending bank.
This is usually the case. In some instances, the exchange rate is simply not quoted to you, because the transfer was a US Dollar to US Dollar transfer, but the settlement was one where the conversion occurs, and in this case, the bank will then assign the exchange rate.
From US, any transfers done overseas, the Dodd-Frank Act (Section 1073) applies, which basically states that full-disclosure must be made prior to the transfer for remittances, including end (net) charges and exchange rate. There is debate if this applies to commercial transfers or large remittance transfers.
A Wire Transfer in itself does not have any exchange rate component into it. A wire transfer itself is a single currency movement. It is either before or after the wire transfer has been done that the exchange and conversion happens.
This is usually the case. In some instances, the exchange rate is simply not quoted to you, because the transfer was a US Dollar to US Dollar transfer, but the settlement was one where the conversion occurs, and in this case, the bank will then assign the exchange rate.
From US, any transfers done overseas, the Dodd-Frank Act (Section 1073) applies, which basically states that full-disclosure must be made prior to the transfer for remittances, including end (net) charges and exchange rate. There is debate if this applies to commercial transfers or large remittance transfers.
A Wire Transfer in itself does not have any exchange rate component into it. A wire transfer itself is a single currency movement. It is either before or after the wire transfer has been done that the exchange and conversion happens.