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Business International business International payments Foreign exchange service

About foreign exchange service

Foreign exchange market

Foreign exchange market

  •  It is the result of international trade and capital transactions between countries
  •  It facilitates those transactions by enabling one currency to be converted into another
  •  It can be split between the spot and forward markets
  •  Activities that may require foreign exchange transactions include:
    • Exporting
    • Importing
    • Foreign currency borrowings
    • Foreign currency investments
    • Profit and interest repatriation
    • Other payments and receivables in foreign currencies

Spot and forward market

Spot and forward market

  • Spot transactions enable the purchase or sale of one currency against another
  • The spot exchange rate is agreed today for physical delivery in two business days
  • A transaction can be settled before the spot date
  • Settlement on the same day is known as value ‘tod’ or value today
  • Settlement on the next business day is known as value ‘tom’ or value tomorrow

Related products

Foreign currency accounts

Simplify banking for importers, exporters and any business needing to hold funds in a foreign currency.

Learn more

International money transfer

Send electronic payments quickly and securely from Australia to banks in more than 200 countries.

Learn more

Talk to us

Call 1800 222 398

Call 1800 222 398

New Foreign Currency Account enquiries

(8:30am-5:00pm AEST, Mon-Fri) 

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Important information

As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances. Foreign exchange service is issued by the Commonwealth Bank of Australia, view our Financial Services Guide (PDF 59kb). View a Product Disclosure Statement (PDS) for Foreign Exchange (PDF 128kb) and consider it before making any decision about this product. If you have a complaint, the Bank’s dispute resolution process can be accessed on 13 2221.