Value date
Value date is the date on which a payment or obligation is due and the funds become available to the receiving party. It can differ from the date an instruction was sent or booked.
How it works
The CPMI defines value date as the day a payment or transfer instruction is due, when the receiver normally gets the funds. The Association of Corporate Treasurers gives two senses. In markets, it is the agreed settlement date of a deal. On bank accounts, it is the date value is recognised for the account holder.
In FX, each trade settles on an agreed value date, such as next day or spot. Intermex settles with its payers using tom and spot trades. The value date, not the trade date, decides when a corridor top-up becomes usable.
A common pitfall is treating credits as available on the booking date rather than the value date. That overstates usable cash. Many reconciliation differences trace back to the two sides recording different dates.
Example
Illustrative example: On Thursday morning a Kenya corridor holds KES 100,000,000 and pays out KES 30,000,000 a day, weekends included. Treasury buys a top-up for value Monday. Thursday to Sunday needs KES 120,000,000. The corridor is KES 20,000,000 short on Sunday unless it is funded sooner.
Frequently asked questions
Why does our bank show a credit we cannot use yet?
The bank may book the credit before its value date. Funds are available for use only from the value date. Use value-dated balances, not booked balances, for positioning.
Is value date the same as settlement date?
For market deals they usually coincide, since the value date is the agreed settlement date. For bank accounts, the value date is when the holder receives value, which can lag the booking date.
Related terms
Sources
- CPMI glossary · Committee on Payments and Market Infrastructures, Bank for International Settlements
- Value date · ACT Wiki, Association of Corporate Treasurers
- International Money Express, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.