Category Archives: Foreign Exchange

What is Packing Credit facility?

Banks extend export credits to their customers in two stages viz. (i) pre-shipment stage and (ii) post-shipment stage. The first stage of loan is at the pre-shipment stage where the loan is released for procuring, Packing processing (where necessary), manufacturing and finally for packing of goods. The loans and advances so provided by the banks,…

How well do you know forex Treasury operations?

In India, over 90% of Treasury operations in forex (foreign exchange) market is between the banks. The inter-bank foreign currency operations are taking place for two purposes namely (i). Buying and selling foreign currency on behalf of their customers as an intermediary. (ii). Proprietary trading (buying and selling currencies on its own account) with an…