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Spot ContractsSpot foreign exchange contracts provide the most immediate conversion of one currency to another. For most countries, payment typically would be achieved within two business days. Spot contracts are useful in handling payables or receivables involving a foreign currency. Payments in advance, open account settlements and letters of credit all can be handled by spot contracts. This is a simple but effective means of making payments internationally. Your company purchases auto parts from Japan. The invoice is received and due immediately. California Bank & Trust will pay the full Japanese yen amount and debit your account for the US dollar equivalent.  Foreign Currency ReceivableYour company sells computer equipment to Canada. The Canadian buyer agrees to make payment as soon as the equipment is received. The customer is given California Bank & Trust's Canadian banking procedure instructions and the US dollar equivalent is credited to your account. 
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