Am I missing something?

[Anonymous No.52923218]

Is the Belgian bank not losing 10,000 GBP in this example? Or am I just retarded

[Anonymous No.52923280]

>>52923218
I think you might be retarded the banks are not giving away their own money they are facilitating an international transaction between a cow and a supermarket for some reason.

[Anonymous No.52923294]

>>52923280
That's what Scottish beef farmers actually look like. Scots have delegated farm work to cows now to cut costs.

[Anonymous No.52923313]

Its some over complicated representation of a bank transfer.

[Anonymous No.52923323]

>>52923294
The road to independence is long and weird.

[Anonymous No.52923342]

>>52923280
Right, but the Belgian bank is moving money from the debtor's account (the supermarket) to the British bank's EUR account, which makes sense.
But then the British bank is debiting the Belgian bank's GBP to credit the farmer's account, which doesn't make sense to me since the British bank was already credited by the Belgian bank in EUR so why is it debiting that bank in GBP?

[Anonymous No.52923382]

>>52923218
why does the belgian bank pay the customer "charges"
shouldn't they be deducting?

[Anonymous No.52923402]

>>52923382
Belgian bank deducts the payment amount plus charges from the supermarket's account and then credits the British bank's nostro the payment amount, keeping the difference

[Anonymous No.52923423]

>>52923342
The Belgian supermarket pays the euro equivalent of the cost to the Belgian bank, the Belgian bank transfers that money into the nostro account (a foreign currency account basically) of the British bank, the British bank has now received the money, they pay out the equivalent amount of their local currency to the farmer. Money has only changed hands between the supermarket and the farmer, the banks only facilitated the payment process which in this case includes a currency exchange.

[Anonymous No.52923448]

>>52923423
Ok but why is the British bank debiting the Belgian bank's nostro?

[Anonymous No.52923496]

>>52923448
That's just the Belgian bank's account it holds with the British bank making a payment to the farmer.

A Nostro account is simply money someone holds in a foreign country.
Vostro is a foreign party's money held in a domestic bank.

[Anonymous No.52923503]

>>52923218
i think the arrows are pointing the wrong way, is this indicating liability or money transfer?

[Anonymous No.52923539]

>>52923218
This is weird for a few reasons.
British bank's nostro shouldn't be called nostro, but rather vostro or loro.
The fx conversion step is completely skipped, it should be made explicit.
Some signs are suspicious, -₤10 000 should probably be + instead, or just use CR/DT like a normal person.

[Anonymous No.52923548]

>>52923496
But if the money being paid to the farmer is coming out of the Belgian bank's nostro, why is the Belgian bank moving 13,550 EUR into the British bank's vostro on its own books?

[Anonymous No.52923571]

The cow gives "meat" to the supermarket. The supermarket's account is debited 13,550 EUR. The belgian bank sends 13,550 EUR to the british bank. So the belgian bank loses 13,550 EUR but has 13,550 less liability to the supermarket.

Then the British bank gets 10,000 GBP, because at some point the 13,550 EUR was converted to 10,000 GBP. It then credits the cow $10,000 GBP. So it gets 10,000 but takes on another 10,000 in liability to the cow.

So the banks are neutral. The supermarket gets meat and 13,550 EUR less credit from the bank, and the cow loses meat but gets 10,000 GBP more credit from the bank.

[Anonymous No.52923607]

>>52923548
I think the British bank's Nostro represents the British farmer's bank account.

[Anonymous No.52925441]

Xrp unlocks both Banks nostro vostro accounts because its the bridge currency.

[Anonymous No.52927160]

>>52923571
i thought that the charges even if are used the + plus symbol would acctualy dedut above 13,550.
i think the money would just run, but where the bank would gain was on those "charges", because the example seem to be even with the conversion in the exchange the value would be the same the only exception would be "charges".

[Anonymous No.52927322]

>>52923548
>>52923607
Its meant to show there is no money actually being transmitted. Both are nostro accounts, and presumably the belgian's nostro at he british bank has a balance above 10,000. So instead of transferring money the two banks just credit/debit each other's nostros.

[Anonymous No.52927351]

>>52923218

I'm too stupid to even attempt to work this out.