No that's incorrect. The wire contains the senders bank and the receiving bank details. Additionally (cross border) the sender & receiver *banks* correspondent banks (and any intermediate bank) details are included. How banks reconcile it internally is not relevent.
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So the funds cannot be deposited (e.g. for Deltec) at the correspondent bank and in any case they have to flow to the Bahamas? So we would have to see them in the CB publishings?
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They can be deposited if that bank is the receiving bank! What you are trying to describe is a receiver, not a correspondent bank. If the payment cannot go through, it will be returned: it doesnt get deposited along the way.
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So basically, if I got it correct, the foreign bank will hold their foreign currency (e.g. European bank w/o a license in the US their USD) in a corresponding banks nostro account?
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yes or in their custodian account (as it can be a corresponding bank or a custodian bank as well). And usually they will hold in multiple corresponding and custodian bank.
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(much of the confusion in this conversation was over what it meant to send funds "to Deltec")
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I think the confusion started there and then it escalated quickly ;)
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Replying to @LetsTrekSpain @SantiagoAuFund and @SBF_Alameda
But the funds could be stored on Deltec's accounts at the correspondend bank (via nostro/vostro). Then there would be no inflow into the Bahamas. Please correct me if I'm wrong
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So we are still friends right? lol :-D jk ;) ;) ha ha
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Best friends of course 😉
A simple "yes" to my question above would have had the same result, but so it's even better since I understood more details. I owe you two some beers!
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