Duties in Foreign Exchange Division
Subject: Finance | Topics:

Duties in foreign exchange division:

In foreign exchange division I was spent 45 days. In this division I have done different types of task which is more essential for banking operation and this is done every day basis. Those are given below:

¨      New Back to Back L/C opening register book maintaining.

¨      Voucher making and issuing.

¨      Acceptance of bill while bill received.

¨      Due date register maintaining

¨      Performance register maintain.

¨      FDBC & FDBP register book maintaining.

¨      Filling up IMP & EXP form which is needed to give information the BB about Import and Export.

¨      LC advising issuing and register book maintaining.

¨      Amendment register book maintaining

¨      BLC register maintaining

¨      L/C opening register book maintaining.

¨      Stamping of import L/C files.

¨      Helping to prepare lodgment voucher and charges realization sheet.

Preparing a Foreign Documents Endorsement.

Foreign Exchange Division

Foreign Exchange Operation:

Every country has certain natural advantages and disadvantages in producing certain commodities while they have some natural disadvantages as well as in other areas. As a result we find that some countries need to import certain commodities while other need to export their surpluses. Foreign trade brings the fruits of the earth to the homes of the humblest among the countries. This transactions are on the basis upon which international trade is made. As one currency is involved in foreign    trade, it gives rise to exchange of currencies which is known as foreign exchange. In exercise of the powers conferred by sec-3 of the foreign exchange regulation-1947, Bangladesh bank issues license to scheduled banks to deal with foreign exchange.

Foreign exchange operation is divided into three sections.

  1. Import
  2. Export
  3. Foreign Remittance

 Foreign exchange accounts:

Nostro account: It means “Our account with you”. It is a foreign currency account bank maintained by its foreign correspondents abroad. For example, US dollar account of Southeast Bank Ltd. Is maintained with Citibank N.A, New York, USA, is a nostro account of Southeast Bank Ltd. i.e. from the point of view of Southeast Bank Ltd., it is their Nostro account.

Vostro account: It means “your account with us”. It is a foreign currency account bank maintained by its foreign correspondents in a bank of a particular country is known as Vostro account. For example, State Bank of Indias Taka accont is maintained with Southeast Bank Ltd. Is the Vostro account . from the point of view of Southeast Bank Ltd., it is a Vostro account held for State Bank of India.

Loro account: It means “their account with you”. Account maintained by third party is known as Loro account. Suppose Southeast Bank Ltd. Is maintained an account with Citi Bank N.A and at the same time Dhaka Bank is also maintaining an account with Citi bank N.A. . from the point of view of Southeast Bank Ltd., Dhaka banks account with Citi N.A  is the Loro account.

Foreign exchange buying rates:

The rates at which the banks are willing to purchase foreign currencies are said to be buying rates, i.e. at these rates foreign currencies are converted into home currency. The various types of buying rates are:

  T.T  (Clean): The T.T clean buying rates is the basic rate of exchange from which other types of buying rates are computed, since in case of T.T.s fund are paid over at the other end on the same day involving no loss of interest, but may attract only small charges for Telex.

  T.T  (Documentary): This rate is applicable in which the handling of document is involved. Bank recovers handling charges on the transaction.

  OD (Sight): This rate is applied for transaction resulting in the purchase or negotiating of export bills. OD (Sight) buying rates vary from TT buying rates to the extent of loss of interest for the period the bank remains out of funds i.e from the time the bank pays out cash at  home.

Import Section


Import means purchase of goods or services from abroad. Normally consumers, firms and government organization import foreign goods or services to meet their necessities. So, in brief, we can say that import is the flow goods and services purchased by economic agent staying in the country from economic agent staying abroad.

Regulation of Import:

Import of goods into Bangladesh is regulated by the ministry of commerce in terms of the Import and Export (control) Act, 1950 with Import policy order issued periodically and public notices issued from time to time by the office of the Chief controller Import Policy (1997-2002), which has come into effect on June14, 1998. And the import policy directs certain Import procedure, which administers the whole activity.

 Import procedures followed by SEBL:

As an authorized dealer, Southeast bank, dhanmondi branch is always committed to facilitate import of different goods into Bangladesh from the foreign countries. Import section, which is under Foreign Exchange Department of the branch, is assigned to perform this job. And to serve its clients demand to Import goods , it always maintains required formalities that are collectively termed as the Import procedure.

  1. At first, the Importer must obtain Import registration certificate (IRC) from the CCI & E submitting the following papers:

¨      Up to date trade license.

¨      Nationality and Asset Certificate

¨      Income tax certificate

¨      In case of company, Memorandum & Articles of Association and certificate of Incorporation.

¨      Bank solvency certificate

¨      Required amount of registration fee

  1. Then the Importer has to contact with the seller outside the country to obtain the Proforma Invoice. Usually an indenter, local agent of the seller or foreign agent of the buyer makes the communication. Other sources are:

¨       Trade Fair

¨      Chamber of Commerce

¨      Foreign Missions in Bangladesh

¨      Journals etc

3.  When the Importer accepts the Proforma Invoice, he/she makes a                                                                                                                                        purchase contract detailing the terms and conditions of the Import

  1.  After making the purchase contract, importer settles the means of payment with the seller. An Import procedure differs with different means of payment. The possible mean are in cash in advance, open account, collection method and Documentary letter of Credit. In most cases  Documentary letter of Credit in our country makes the import payment. Purchase contract contains following which payment procedure has to be applied.

Different means of payment:

  1. a.      Cash in advance: Importer pays full, partial or progressive payment by a foreign DD, MT or TT. After receiving payment, exporter will send the goods and the transport receipt to the importer.
  2. b.      Open account: Exporters ships the goods and sends transport receipts to the Importer. Importer will take the delivery of the goods makes payment by foreign DD, MT or TT at some specified date.
  3. c.       Collection method: Collection method are either clean or documentary collection. Again documentary collection Document against Payment (D/P) or  Document against Acceptance (D/A). the collection procedure is that the exporter ships the good and draws a draft/bill on the buyer. The exporter submits draft/bill to the remitting bank for collection and the bank acknowledges this.  Then the remitting bank sends the draft/bill and a collection instruction letter to the collecting bank. The title of goods is released to the importer upon full payment or acceptance of the bill/draft.
  4. d.      Letter of Credit (L/C): The method by which a commercial bank undertakes to make payment on behalf of the importer to the Exporter is known as Letter of Credit (L/C). on the other hand it is a credit contract whereby, the buyers bank is committed to place an agreed amount of money at the sellers disposal under some agreed conditions. Since the agreed conditions include amongst other things, the presentation of some specified documents. The letter of credit is called documentary.

An Importer of a country requesters his banks to open a Credit in foreign currency in favor of the exporter at a bank in the letters country. The Letter of Credit (L/C) is issued against payment of the amount by the by the Importer. The Letter of Credit (L/C) authorized the exporter

Forms of Letter of Credit:

Letter of credit is basically classified in to two:

Revocable L/C

Irrevocable L/C

Revocable L/C: if any L/C can be amendment or changed of any clause or cancelled by consent of the exporter and importer, it is known as revocable L/C.

Irrevocable L/C: if any L/C can not be amendment or changed of any clause without any consent of all concern parties –importer, exporter, issuing bank, and confirming bank is known as irrevocable L/C.

The banks involved in L/C:

  • The Issuing Bank(Opening Bank): The opening bank is one that issues the letter of credit at the request of the buyer. By issuing a letter of credit it takes upon itself the liability to pay the bills drawn under the credit.
  • The Advising Bank: The letter of credit is transmitted to the beneficiary through a bank in the letters country. The bank may be a branch or a correspondent of the opening bank. The credit is sometimes advised to this bank by a cable and then transmitted by it to the beneficiary on own its specified form
  • The Negotiating Bank: This the bank that honored the documents presented as per letter of credit. The negotiating bank has to be careful scrutinize that the draft and the documents attached there to are in conformity with the condition laid down in the letter of credit. Any discrepancies may result in refused in the part of the opening bank to honor the instrument is such an eventually the negotiating bank has to look back to the beneficiary for refund of the amount paid to the beneficiary.
  • The Reimbursing Bank: It is the bank in which the issuing bank maintains a Nostro account and this will make the payment to the beneficiary.

Documents Used in operation of L/C:

  • Pro forma Invoice: Performa Invoice is the sale contract between seller and buyer in import-exporter business. The sale contract, which is direct correspondence between importer and exporter, is called Performa Invoice. This is no intermediary between them. On the other hand, there may be an agent of exporter in importer’s country. In this regard, if the sale contract is occurred between the indent of exporter and importer then it is called indent.
  • Import Registration Certificate(IRC): The importer collects from the C.C.I & E office by submitting required documents and payment of required fees.
  • Bill of exchange: The Bill of exchange is a negotiable instrument through which payment is effected in the trade deals. It is an unconditional order or writing , addressed the buyer to seller by which the seller can obtain payment from the buyer for the invoiced value of the goods.
  • Bill of Lading: It is the list of goods being shipped which the captain gives to the person sending the goods to show that the goods have been loaded.
  • Airway Bill: Sometimes goods are transported through small bulk or those are perishable in nature then the mode of transport other that shipping may be resorted to far carriage of the goods, Airway Bill receipt take place of loading depending on the nature of the carrier.
  • Commercial Invoice: It is the sellers bill for the merchandise. It contains a description of goods, the price per unit, total value of the goods, packing specifications etc. the seller under his own form and signature in the name of the buyer issues the invoice.
  • Certificate of Origin: This is the  certificate issued by a recognized authority. In the exporting country certifying the country of origin of the goods. It is usually made by the chamber of commerce.
  • Packing list: The exporter prepares an accurate packing list showing item by item. The content of the consignment to enable the receiver of the shipment to check the contents of the goods and marks of the packages, quantity, weight etc. of the goods exported.
  • Bill of Entry: It is a document, which contains the particulars of the imported goods as well as the amount of customer duty payable.
  • Clean Report of Findings: The certificate is provided by the Pre shipment Inspection concerns. The entire world has been brought under the three supervision of the three pre shipment inspection concerns based on different territory.

 Procedure of opening the letter of credit and Payment:

  • NBL identify whether the goods (will be imported) are in the import list, which is selected by the government of Bangladesh.
  • Justify the clients credit worthiness by collecting social status- information form after business or from after bank credit report.
  • Judge whether the importers goods bear good quality and more is a market of goods.
  • Secures the documents efficiently.
  • If every thing is OK, then the client proposes to fill up the prescribed form,
  • The sum percent of total amount of L/C should be deposited and get admonition form.
  • Then it is registered in L/C register book.
  • Three copies of L/C are prepared.
  • Two out of three is sent to advising bank and rest are sent to reimbursing bank with order to pay claim to the negotiating bank.
  • Advising bank sent one copy with advice to ship to the importer.
  • Exporter submits necessary documents to the negotiating bank and receipts his/her claim.
  • Negotiating bank sent two same letter of payment to the issuing bank and importer. Simultaneously the negotiating banks demand his/her claim from reimbursing bank.

The importer submit the following documents with the application for opening the L/C:

  Tax Identification Number (TIN)

  Valid trade license

  Import registration Certificate (IRC)

The bank will provide the following documents before opening the L/C:

  LCA form

  IMP form

  Necessary charger documents for documents

 L/C Authorization Form (L/CAF):

The letter of credit authorization form is the form prescribed for the authorization of the Letter of Credit against importer and used in lieu of import license. The authorized dealers are empowered to issue LCA Form to the importer as per basis of  licensing of the import policy order in force to allow import into Bangladesh. In foreign exchange is intendment to be bought from Bangladesh Bank’s against an LCAF. It has to be registered with Bangladesh bank registration unit located in the concerned area office of the CCI&E. The LCAF form contains the followings-

  • Name and address of the importer
  • IRC no. and year of  renewal
  • Amont of L/C applied for
  • Description of items to be imported
  • HS Code no.
  • Signature of the importer with seal
  • List of goods to be imported goods.

Accounting Treatment:

APPLICANTAppollo Ispat Complex LTD.


FCY AMOUNTUSD                 45,600.00
L/C TypeAt Sight/ Defer Payment








A/C No














ADD Conf.com








PSI Handing Charge


Handing Charge


Stamp In Hand



L/C Application Set



Vat on Swift,PSI,Handing Charge












A/C No

Customers Liability



Bankers Liability



 The L/C Confirming Process:

  Southeast Bank

Dhanmondi Br.(L/C issuing                             Bank)

 Issue L/C & request to add confirmHSBC (L/C confirmrng Bank)

 Forwarding Documentary credit by confirming bank:

There are usually two banks involved in a documentary credit operation. The issuing bank and the 2nd bank, the advising bank is usually a bank in the sellers country. The issuing bank asks another bank to advise or confirm the credit.

If the advising bank is confirming the credit, this mention that the confirming bank, regardless of another consideration, must pay accept or negotiate without recourse to seller. Then bank is also called a confirming bank.

 Submission of necessary documents by exporter to the Negotiating Bank:

As soon as the seller or exporter receives the credit and is satisfied that he can meet its terms and conditions, he is an position to load the goods and dispatch them. The seller then sends the documents evidencing the shipment to the bank.

Generally the documents are:

  • Bill of Exchange
  • Commercial Invoice
  • Bill of Lading/ Air way bill/ Truck Receipt
  • Certificate of Origin
  • Packing List
  • Clean Report of Findings (CRF)
  • Insurance Cover Note
  • Pre-shipment certificate

 Lodgment and Retirement of shipping documents:   

After scrutinizing the import negotiating department, if no discrepancies is found then it is treated to be accepted after the end of seven banking day following the day of receipt of the document under “Article 1(b) of UCPDC-500”. If any discrepancy found then the banker inform it to the importer that whether he accepts the bills with discrepancies or not. If the importer does not accept, the banker informs it to the negotiating bank within seven banking days from the date of receipt of the documents, otherwise it is treated to be accepted and the opening bank must bound to pay against the bill and no complain against the bill will be accepted more than 4 banking days following the date of receipt of the documents.

The local office oases the following vouchers after negotiation:

Accounting treatment:

BLC (Payment against document) A/CDr.
H.O. International A/CCr.

Reverse Entry is given:

Bankers liability A/CDr.
Customers liability A/CCr.

 Then shipping document then stamped with PAD number and entered in the PAD register. As soon as the above formalities are completed, the importer is served with PAD bill information for retirement of concerned import documents.

Import Financing:

Import financing can be divided into two types:

  • Pre shipment finance
  • Post shipment finance


This types of finance refers to the facilities extended to the importers in the form of Letter of Credit.

Actually Banks do not invest any fund at this stage of financing. But from the definitions of Letter of Credit we understand that by Opening L/C on behalf of the customer, Bank undertakes to make payments to the supplier of goods against the L/C subject to submission of certain documents. Normally bank allows the customer to open L/C against certain margin i.e, without having full coverage of the L/C value. As such Letter of credit is a sort of direct finance of the customer.

Before allowing Pre shipment finance, a bank normally considers:

  • Credit worthiness
  • Import performance
  • Import Regulation
  • Marketability of goods.


This types of finance refers to the credit facility refers to the credit facility refers to the importer after shipment of goods. Post shipment finance is allowed in the following forms:

  • Payment against Documents (PAD)
  • Loan against Imported Merchandise (LIM)
  • Loan against Trust Receipt (LTR)


The bank who established Letter of Credit is bound to honor the suppliers claim when these are presented in strict conformity to the terms and conditions of the Letter of Credit.

Upon receipt of documents, the duty of opening bank is to carefully examine the same. If everything is all right, bank arranges payment against the bills to the debit of PAD A/C. In most of the cases documents are received with comments that Negotiating Bank has already claimed reimbursement if the bill is drawn in restrict conformity to the L/C. In  that situation Opening Bank responds the debit entry of their Nostro account to the Debit of PAD A/C.

Soon after lodgment of documents in, PAD, opening bank inform the customer regarding receipt of the bill and request them to retire the documents by depositing the value of the documents with interest of any.


Loan again Imported Merchandise (LIM) is a facility provided by the bank provided by the bank to the importer who are in short in fund to retire the import bills and thus to clear the goods from the authority.

On the arrival of goods and lodgment of import documents, importer may request the bank of a clearance of goods from the port(custom) and keep the same to bank warehouse. proper sanction from the competent authority is to be obtained before clearance of consignment.

For giving this types of loan, officer makes loan proposal and sends it to H/O for approval. After getting approval from H/O, bank grants loan in the form of either LTR or LIM.


     LIM/LTR creation:

LIM/LIR (Importer) A/CDr.

 After payment of the loan or delivery of goods:

 Party;s A/CDr.

Interest A/CCr.


Total Import Business of last three months as a chart in Dhanmondi Branch :






 Table-1: Performance of Import Business of last Consecutive 3 Months.

Import Business of last five years as a graph of Southeast bank  :








Table-2: Performance of Import Business of last 5 years of Southeast bank.

Here we clearly see that both graph indicates the increment of Import business of Southeast bank ltd. along with Dhanmondi Branch.

Export Section


Export is the process of selling goods and services to the to other countries. Export L/C operation is just reverse of the import  L/C operation. For exporting goods by the local exporter, bank may act as advising Banks and collecting bank (negotiating bank) for the exporter.

Regulation of Import:

Export policies formulated by the Ministry of commerce , GOV provide the overall guideline and incentives for promotion of exports in Bangladesh. Export policies also set out commodity-wise annual target. It has been decided to formulate these policies to cover a five year period to make them contemporaneous with five year plans and to provide the policy regime. The export oriented private sector, through their representative bodies and chamber are consulted in the formulation of export policies

and are also represented in the various export promotion bodies set up by the government.

 Export procedures:

The import and export trade in our country are regulated by the Import and Export(Control) Act,1950. under the export policy of Bangladesh the exporter has to get valid export registration Certificate (ERC) from chief controller of Import & Export(CCI&E). the ERC is required to renew every year. The ERC number is to incorporate on EXP forms and other papers connected with exporters.

 Registration of Exports:

For obtaining Export Registration certificate(ERC), intending Bangladeshi exporters are required to apply to the controller/ assistant controller of Imports and Exports in the prescribed form along with the following documents:

  • Nationality and Asset Certificate
  • Memorandum and Article of Association and Certificate of Incorporation in case of limited company
  • Bank certificates
  • Income tax Certificates
  • Trade License etc.

 Securing the order:

After getting ERC certificate the exporter may proceed to secure the export order. He can do this by contacting the buyers directly or through agent.

In this purpose the exporter may get help from:

  • License officer
  • Buyer’s local agent
  • Export promotion organization
  • Bangladesh Mission Abroad
  • Chamber of Commerce
  • Trade fair etc.

 Processing and opening of Back to back L/C:

Back to Back L/C is set in such that it can be paid out of export proceeds.

It is simply issued to the clients against an import L/C. Back to Back mechanism involves two separate L/C. One is master Export L/C and another is Back to Back L/C. on the strength of Master Export L/C bank issues back to back L/C. Back to Back L/C is commonly known as Buying L/C, on the country Master Export L/C is known as selling L/C.

 Features of Back to Back L/C:

    An Import L/C to procure goods /raw materials for further processing.

    It is opened based on Export L/C.

    It is a kind of Export Finance.

   No margin is required to open Back to Back L/C.

    Application is registered with CCI&E.

    Applicant has bonded warehouse license.

    L/C value shall not exceed the admissible percentage of net Free on Board (FOB) value of relative Master L/C.

    Period will be up to 180 days.

    The import L/C is opened for 75% of the value of Export L/C.

    Here L/C issued against the lien of export L/C.

    Arrangements re such that export L/C matures first then out of this export profit, import L/C is paid out.

Preparation of export Documents:

  • Bill of Exchange or  Drafts
  • Commercial Invoice
  • Bill of lading
  • Inspection Certificate
  • Packing List
  • Export license
  • Shipment Advice
  • Certificate of origin
  • Weight Certificate
  • Certificate of Analysis
  • Quality Certificate
  • EXP Form
  • Documents received through courier.

 Procuring the materials:

After making the deal and on having the L/C opened in his favor, the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise to shipment of goods.

 Shipment of goods:

Then the exporter should take the preparation for export arrangement for delivery of goods as per L/C and inciters, prepare and submit shipping documents for   payment/Acceptance/negotiation in due time.

Documents for shipment:

  • EXP form
  • ERC(valid)
  • L/C copy
  • Customer duty Certificate
  • Shipping instruction
  • Transport documents
  • Insurance Documents
  • Invoice
  • Other Documents
  • Bill of Exchange
  • Certificate of Origin
  • Inspection Certificate.

Then the documents are submitted to the bank for Negotiation.

 Export Financing:

Financing export constitutes an important part of a bank’s activities. Exporters require financials services at four different stages of their export operation. During each of these phases exporters need different types of financial assistance depending on the nature of the export contract.

Export financing can be divided into two types:

  • Pre shipment finance
  • Post shipment finance


This types of finance refers to the credit facility extended to the exporter prior to the shipment of goods for export. Pre shipment finance is allowed in the following forms:

  • For procurement of Raw materials
  • For processing the raw materials
  • For packing of finished goods
  • For payment of transportation cost.

Before allowing Pre shipment finance, a bank normally considers:

  • Credit worthiness
  • Import performance
  • Import Regulation
  • Marketability of goods.

Pre shipment finance can be allowed in the following forms:

  • Export cash credit
  • Back to Back Letter of Credit
  • Export credit against Trust receipt
  • Packing Credit
  • Back to Back Letter of Credit under EDF


This type finance refers to the credit facilities extended to the exporter against export documents after shipment of goods. Post shipment finance is allows in the following forms

  • Negotiation of documents under L/C
  • Foreign Documentary bill for purchase
  • Advanced against Export Documents sent for collection

 Negotiation of documents under L/C:

The exporter presents the relative documents to the negotiating bank after the shipment of the goods. A slight deviation of the documents from those specified in the L/C may raise an excuse to the issuing bank to refuse to reimbursement of the payment already made by the Negotiating bank. So, the Negotiating bank must be careful, prompt, systematic and indifferent while scrutinize the documents relating to the export.

Foreign Documentary bill for purchase:

Here the exporter are also made on the basis of contract between the buyer and the seller without the cover of the letter of credit. In such case, documents are delivered to the buyer through the intermediary of the foreign correspondence of the authorized dealer against payment.

Payment of Back to Back L/C:

In case of Back to Back L/C as 60-90-120-180 days maturity period, deferred payment is made. Payment is given after realizing export proceeds from the L/C issuing Bank.

 Export Document Checklist:

  1. General verification: L/C restricted or not. Exporter asked to submit documents before expiry date of the credit. shortage of documents etc.
  2. Particular examination: each and every documents should be verified with the L/C.

Total Export Business of last three months as a chart in Dhanmondi Branch:






 Table-3: Performance of Export  Business of last Consecutive 3 Months.

Export Business of last five years as a graph of Southeast bank :








 Table-4: Performance of export Business of last 5 years of Southeast bank.

Here we clearly see that both graph indicates the increment of Export business of Southeast bank ltd. along with Dhanmondi Branch.

 Foreign Remittance section

 Foreign remittance: Foreign remittance section of SEBL,Dhanmondi branch is an integral part of foreign exchange department. And this section of section of Foreign Exchange department deals with

¨      Inward foreign remittance

¨      Outward foreign remittance

¨      Opening foreign currency accounts

¨      Governing wage earners bond

¨      Opening student file etc.

But first two Inward and Outward foreign remittance are the main functions.

 Inward foreign remittance:

Normally, Inward foreign remittance comprises all incoming foreign currencies. Remittance issued by the correspondents banks situated in the foreign countries and thereby drawn on SEBL, dhanmondi branch are considered to be its Inward foreign remittances. Following are the Inward foreign remittances of SEBL, Dhanmondi branch.

  FDD Payable

  FTT Payable

  TC Payable

  Encashment of foreign currencies

  Purchase of foreign currencies

Outward foreign remittance:

Remittances issued by the Southeast bank, Dhanmondi branch to there foreign correspondents to fulfill their customers needs are considered to be the Outward foreign remittances. It comprises the following

  FDD Issued

  FTT Issued

  TC Issued

  Endorsement of foreign currencies in the passport

  Sale of foreign currencies


1     Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit).

2    Buyer applies to his issuing bank, usually in Buyer’s country, for letter of credit in favor of Seller (beneficiary).

3    Issuing bank requests another bank, usually a correspondent bank in Seller’s country, to advice, and usually to confirm, the credit.

4    Advising bank, usually in Seller’s country, forwards letter of credit to Seller informing about the terms and conditions of credit.

5    If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

6    Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

7    Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

8    Bank, if other than the issuing bank, sends the documents and draft to the issuing bank.

9    Bank examines the documents and draft for compliance with credit terms. If complied with, Seller’s draft is honored.

10    Documents release to Buyer after payment or on other terms agreed between the bank and Buyer.

11    Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.

Foreign Exchange

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