Definition Of


Limit is a documentary credit limit is the maximum amount for which an importer may have balances outstanding under documentary credits at any one time.

Share it:

More from this Section

  • Concession agreement
    Concession agreement refers to an understanding or contract between a foreign corporation and a host government defining the rules under which the ...
  • Bond
    Bond is a negotiable instrument evidencing debt, under which the issuer promises to pay the holder its face value plus interest as agreed.
  • The balance of payments (BOP)
    The measurement of all international economic transactions between the residents of a country and foreign residents is called the balance of payments (BOP).
  • Foreign Currency option
    A foreign currency option is a contract giving the option purchaser (the buyer) the right, but not the obligation, to buy or sell a given amount of foreign exchange ...
  • Swap
    A swap is an agreement between two companies to exchange cash flows in the future to protect their positions from different risks.
  • Bid and Ask Quotations
    Interbank quotations are given as a bid and ask (also referred to as offer). A bid is the price (i.e., exchange rate) in one currency at which a dealer will buy another currency.
  • World Trade Organization (WTO)
    The World trade organization(WTO) was created as a result of the Uruguay Round of trade negotiations that led to the GATT accord in 1993.