>>Hi,
>>
>>Does anybody know if, when a money is transferred from a European bank to an American bank, the conversion takes place in Europe or in the USA. That is, more specifically, does the USA bank receive the money in Dollars? or the USA bank received the amount in Euros and then converts it into the Dollars?
>>I tried to look online and I can't find a definitive answer. Maybe, if someone has this type of transaction done for them or their business, he/she knows.
>
>There seems to be several ways to do it i.e. https://www.expatica.com/finance/money-management/best-ways-money-transfers-international-108328/ . The exact mechanics of how funds are transferred will depend on the method used.
>
>If amounts are significant, business customers will usually open an account in their country, denominated in the foreign currency. In your example, a US business would hold an account at a US bank denominated in euros. There will be some sort of charge to make the transfer, but no exchange fees will apply. The business can simply hold the transfer in the account and exchange amounts as needed to US$. If their bank wants too high an exchange fee they can make another transfer to an investment broker or other intermediary who's willing to give a better rate. That helps keep the bank's rate reasonable - and often negotiable, you don't always have to pay the posted rates. And if the business needs to make any payments in euros they can do that directly from that account. Bottom line, the business is in control of what fees are paid, and when.
>
>Many Canadian businesses have significant US exposure and it's pretty much de rigueur for them to have US$ accounts. It's pretty easy for consumers to get them as well.

Thank you for your input.