One simple method for ensuring currency exchange rate, payments and delivery is for the importer’s banker to issue a transaction guarantee in the exporter’s favour, allowing the exporter to complete the delivery and accept cash under the collection. The importer’s bank provides a transaction assurance for the exporter, securing shipment, fee, and an exchange rate. To make sure participants understand the exchange rate applied at the point of transaction, the parties must sign an FX contract with the concerned banks.
