I was looking at Singapore dollar exchange rates provided by a bank:
What is the difference between TT and OD?
The webpage itself says:
Telegraphic Transfer ("TT") rates and On Demand ("OD") are rates available involving foreign exchange.
The TT rate is applicable to funds that has already been cleared with the Bank while the OD rate is applied otherwise.
The buying rate is used when foreign currency is sold to the Bank and the selling rate is used when foreign currency is bought from the Bank.
I don't understand the "explanation" above. I also tried to read other websites, but all of them go on and on about remittances, demand drafts, foreign checks, invoices, bills of exchange, letters of credit, … which are documents and instruments that I don't really understand.
- What is TT and what is OD?
- Suppose I have Euros, and walked into the bank to buy Singapore dollars, which rate will I get? $1.5809 per Euro or $1.5731 per Euro?
- Notice how the TT rates are generally better than the OD rates. Why is this so? And why is the US dollar alone in having a TT rate that is worse than the OD rate?
- Since TT rates are usually better, how do I get TT rates?