FX Spot Transaction — Bank Sells USD to Customer
A corporate customer buys USD from the bank at the spot ask rate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Customer JOD Account (Debit) | Liability (−) | 75,300.00 | - |
| USD Nostro Account (Asset, JOD equivalent) | Asset (−) | - | 75,000.00 |
| FX Trading Income (Spread) | Revenue (+) | - | 300.00 |
💡 Accountant's Note
When selling USD to the customer, the bank charges the ask rate (higher than mid). The spread between mid and ask is trading income. The bank's USD nostro decreases and must be replenished through interbank dealing if at or below the minimum balance.
Practitioner & Systems Framework
💻 ERP Architecture
Same systems as the buy transaction. In SAP TRM and Oracle FLEXCUBE FX, the bank's FX position is automatically updated. If the position exceeds the CBJ open position limit, the treasury team must execute a cover deal in the interbank market before end of business.
⚠️ Audit Flags
Auditors test that customer rates never breach the CBJ's published spread tolerance. For large transactions, individual deal rates are tested against the bank's dealing room system logs. Unauthorized override of system-generated rates is a serious compliance issue.
📄 Required Documentation
FX deal confirmation, customer instruction, dealing room rate log, CBJ daily rate bulletin, and end-of-day FX 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.