Daily Archives: October 28, 2025

Why the “Transit Period” in Export Is Often Misunderstood

The “transit period” in export finance refers to the banking time between the date an export bill is negotiated/purchased/discounted by the bank and the date the bill proceeds are received in the bank’s Nostro account, not the shipping time taken by goods to reach the overseas buyer. This period is termed the Normal Transit Period…

Understanding the “Cooling Period” in the Collection of Foreign Currency Cheques

Introduction In international banking, the collection of foreign currency cheques involves multiple jurisdictions, correspondent relationships, and operational risks. One of the most critical operational controls in this process is the “cooling period” — the waiting interval a bank observes after receiving provisional credit in its Nostro account before releasing funds to the customer. This period…