FX Spot Transaction — Bank Buys USD from Customer
A corporate customer sells USD to the bank at the spot rate; bank receives USD and pays JOD.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| USD Nostro Account (Asset, JOD equivalent) | Asset (+) | 75,000.00 | - |
| Customer JOD Account (Credit) | Liability (+) | - | 74,700.00 |
| FX Trading Income (Spread) | Revenue (+) | - | 300.00 |
💡 Accountant's Note
The bank earns the bid-offer spread on FX transactions. The USD received is at the interbank rate; the JOD paid is at the customer rate. The difference is the FX trading income (spread). The USD is recorded in JOD equivalent at the spot rate.
Practitioner & Systems Framework
💻 ERP Architecture
In SAP Treasury (TRM), FX spot deals are entered as FX transactions with value date T+2. In Oracle FLEXCUBE FX module, 'FXSPOT' transaction type handles customer FX. The deal rate must be within the CBJ-approved spread limits. Revaluation of FX positions runs at EOD using the official CBJ rate.
⚠️ Audit Flags
CBJ closely monitors FX rates offered to customers — they must not deviate from the official rate beyond the permitted spread. Auditors verify that the bank's FX position (long/short USD) complies with CBJ open position limits. Mismatched value dates between the customer leg and the hedging interbank deal are flagged.
📄 Required Documentation
FX deal ticket, customer instruction or dealing confirmation, CBJ rate sheet for the date, nostro account debit/credit confirmation, and treasury position report.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.