I would like to know what actualy exchanges hands between banks(and
the process in which it occurs) when money is wired.

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Clarification of Question by raminsarshad-ga on 19 Mar 2006 23:35 PST

If you are sending 10 billion dollars to China via wire.  what
exchanges hands between the two banks.  And what is the procedure and
Mechanism of this?

Physically nothing changes hands; these are merely bookkeeping entries.

Also it has a lot to do with loans and the modern banking system. For
alost more information i would recommend a popular college
Microeconomics book Principles of Microeconomics.
http://www.amazon.com/gp/product/0324171889/sr=8-1/qid=1142804580/ref=pd_bbs_1/002-0132455-4535205?%5Fencoding=UTF8

The last comment may be correct, but I think the matter can be
explained more simply.
As Probono mentions, it is just bookkeeping entries.  I'll make an
example:  Someone with an account with a small bank wants to transfer
money to your account with another small bank.  They both have
accounts with the Federal Reserve Bank (or with the same major bank). 
The first bank debits its customers account and credits in its books
the account of the major bank, giving it instructions to transfer the
money to your bank account.  The major bank makes similar accounting
entries:  debiting the first bank's account with it and crediting your
bank's account, and also send instructions to that bank, which does
the same thing, debiting the account of the major bank in its books
and crediting your account.  Lucky you!

All comments are great but is physicaly changing hands between on
international bank and the other.  You can't say it's just like taking
a zero from this account and adding it to the other acounts balance.

Some thing changes hands with the two international banks.  and that
is my question what is it?

The only thing that "changes hands" is the instructions from one bank
to the next, properly encoded to assure that the message did indeed
come from the bank and had been properly authorized.

Here is a website that says it somewhat differently.  My "major bank"
in the terms of the site is the "interbank clearing centre".  Don't
worry about it being the site of a Czech bank, the system is
international.

http://www.cnb.cz/www.cnb.cz/en/payment_systems/certis/certis_popis.html

If you still have questions, please let us know.