Cross-currency letters of credit gaining popularity in Asia

Divergent central bank policies see CNH LCs increasingly used to cover USD invoices

multi-currency trading

Dealers in Asia are seeing increasing interest in cross-currency letters of credit (LCs), with users looking to take advantage of preferable interest rates to finance dollar-denominated trade with foreign currencies.

Letters of credit are a common trade finance product issued by banks and serve as a buyer’s guarantee of payment to the seller until the final invoice is settled. The currency of the LCs is traditionally in line with that of the underlying trade invoice, usually denominated in US

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.