| FOREX EXCHANGE
USD BUY: 101.50 SELL: 105.90
GBP BUY: 132.00 SELL: 136.10
EURO BUY: 116.00 SELL: 119.85
INR BUY: 1.58 SELL: 1.64
AUD BUY: 77.55 SELL: 80.30
JPY BUY: 0.91 SELL: 0.94
ZAR BUY: 7.95 SELL: 9.45
CAD BUY: 77.80 SELL: 80.90
CHF BUY: 106.15 SELL: 108.95
TZS BUY: 0.0374 SELL: 0.0460
UGX BUY: 0.0250 SELL: 0.0286
AED BUY: 27.95 SELL: 30.00

Letters of Credit

A Letter of Credit (LC) is a document issued by Credit Bank on behalf of a customer (buyer/ importer), assuring payment to a seller of goods and/or services, provided that the specified complying documents are presented to the Bank/s.

These documents prove that the seller/beneficiary has performed the obligations under an underlying contract (e.g. sale of goods contract) and that the goods (or services) have been supplied as agreed. In return for these documents, the beneficiary receives payment from the Bank that advised/confirmed the LC.

An LC therefore serves as a guarantee to the seller that he will be paid by the customer.

The LC can also be used to ensure that all the agreed upon standards and quality of goods are met by the supplier.

Benefits

  • Under a Letter of Credit, the payment risk is eliminated meaning our customer can therefore negotiate better price discounts with their suppliers or request extended credit terms to help improve cash flow because import payment is guaranteed by bank upon presentation of compliant documents by the beneficiary.
  • A customer is able to maintain control over the transaction through the defined LC terms and mechanisms.
  • Payment is only after shipment and supplier’s compliance
  • The risk of not receiving goods ordered can be reduced
  • Eliminates the country risk
  • The facility available in local as well as foreign currencies

At Credit Bank, there are various types of LC’s that are available and can be structured to suit your transaction requirements; from Back to back LC’s, Transferable LC’s, Revolving LC’s, Standby LC’s, Red/Green clause LC’s, we have it all.

With Credit Bank, you will also dedicated team that ensures seamless follow-up at all stages of the import / export and the payment process giving you peace of mind.

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