(1)in cover,we have Vostro a/c credited your a/c with us
Remitting bank (2)in cover,please
Paying bank
Nostro a/c
debit our a/c with you
If there is no vostro or nostro account with each other, but the remitting bank can find a third bank, with which both the paying bank and the remitting bank maintain current account.

International exchange
refers to operational activities related with the
currency conversion and transfer of funds between countries in order to settle the claims and debts by payment instruments through banks. In broad sense: international settlement In narrow sense: international bank remittance
收款人：
PAY TO BANK （收款人的帐户行）FOR CREDITING A/C NO. OF 收款人
Remitting bank: bank of Asia, FM: bank of Asia, Tianjin Tianjin TO: bank of Asia, Luxemburg Paying bank:bank of Asia, DATE: 9 June Luxemburg TEST 2563 OUR Date of cable: 9 June REF208TT0219 NO ANY CHARGES FOR US Test:2563 PAY USD 1,660.00 Ref No. 208TT0219 TO Banque International du Amount: USD 1,660.00 Luxemburg Payee:Marie Clauda Dumont, FOR CREDITING A/C NO. 0Luxemburg account No.0164/7295/550 164/7295/550 with Banque International du Luxemburg OF Marie Clauda Dumont,Luxemburg Message:payroll Remitter:Crystal Palace Hotel, MESSAGE payroll ORDER Crystal Palace Tianjin Hotel,Tianjin Cover:Debit our H.O. account
Slow Authorized signature
Test key of SWIFT, Authorized Authentication key signature
Security
Quite safe
Charge
High
Reliable, but Stopmay be lost payment is in post time consuming Low Low


Mail transfer，M/T
the remitting bank instructs and authorizes the paying bank by mailing a P.O. cheap but slow procedures for M/T and T/T


Remittance by banker’s demand draft, D/D
Chapter three Remittance

International exchange


The concept of remittance
Parties of remittance

Methods and procedures of remittance
Reimbursement of remittance cover Application of remittance

payee
③ paying Paying baplication
② instruction
Remitting bank
Parties and their obligations
汇款人（remitter/importer）:
Remittance application
On the request of the remitter, the remitting bank draws a demand draft on its overseas branch or correspondent bank ordering the latter to pay on demand to the payee upon presentation. convenient and transferable procedures for D/D
remitter
1) D/D application
3)bank demand draft
payee
2)Bank demand draft
4)Presenting 5)payment Collecting bank
Remitting bank
6)Debit advice
Paying bank
Cancellation of the remittance

Reimbursement of remittance cover

If the paying bank maintains a current account with the remitting bank(1) or the remitting bank has a a/c with the paying bank(2)

M/T or T/T can be cancelled before its payment is made. It’s usually done at the request of the remitter or the payee who refuse to receive the payment.
The contents of T/T
FM:汇出行 TO:汇入行 DATE:发电日期 TEST密押 OUR REF NO.汇款编号 NO CHARGES FOR US 我行不负担费用 PAY(AMT) VALUE (DATE)起息日 TO(BENEFICIARY)收款人 MESSAGE附言 ORDER/BY ORDER OF (B/O)汇款人 COVER头寸拨付

Table 3.1 Comparison of the M/T, T/T and D/D
Items Methods of transfer Time of transfer Method of authentication T/T Cable/Telex/SWIF T Fastest M/T Airmail D/D Mail or carried by remitter

Once the payment has been effected, the remittance cannot be cancelled. The remitter himself can contact the payee to claim back the payment. Unless the remitter assumes the damages of issuing a duplicate of draft, the issuing bank can accept the reason of being lost or stolen the draft. The remitter will sign a letter of indemnity.
P.O. and authenticate the relevant
signature or test key ;

usually paying after its receipt of the funds from the remitting bank; clean payment; inward remittance
COVER Debit our H.O. account
remitter
(1) (2)
(8)
payee
(4) (5) (6)
Remitting bank
(3) (7)
Paying bank
(1)Remittance application with funds and commission; (2)receipt (3)sends P.O. /telex/SWIFT instructing paying bank to make payment (4)after authenticating, notifies the payee with a copy of cable message (5)the payee presents the copy and ask the paying bank to pay (6)the paying bank debited the remitting bank’s a/c and make payment (7)sends the debit advice and payment receipt from payee to the remitting bank (8)the debt is discharged