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Is The Issuing Bank Allowed To Make Payment In A Currency Other Than The Currency Agreed In The Letter Of Credit? |
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Answer» Generally speaking, the currency specified in the LETTER of CREDIT should be what is paid by the Issuing Bank to the BENEFICIARY. However, WHILST the bank is obliged to pay in the currency of the LC, there is nothing to stop the bank AGREEING to the beneficiary’s request to settle the equivalent amount in a different currency. Generally speaking, the currency specified in the Letter of Credit should be what is paid by the Issuing Bank to the beneficiary. However, whilst the bank is obliged to pay in the currency of the LC, there is nothing to stop the bank agreeing to the beneficiary’s request to settle the equivalent amount in a different currency. |
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